Hint: How many watch minutes will pass in a real hour?

Answer: 8.10am.

Since the watch is gaining 6 minutes every hour, for every real hour that has passed, the watch will only show 66 minutes. Since the watch shows 8.26am, we know that 506 watch minutes have passed. This therefore equals 460 real minutes and hence 7 hours and 40 minutes. The watch stopped 30 minutes ago, therefore the time must now be 8.10am.