It happens everywhere. Evolution is merely change studied in specifically defined systems. These systems are not discrete they are contiguous and can be formed within each other.
What you are talking about is organic evolution -- the specific changes required to bring about life.
Evolution can be studied irrespective of timescale. Time is completely relative in terms of the age of the universe. The evolutionary study of the universe in general is called cosmology. Those who study the evolution of physical planets would call it geology.
I view evolution in a much broader and more generalized sense -- or try to.