Reasoning
The watch now shows 8:26am, so we know that 8 x 60 + 26 = 506 watch minutes have passed.
Since the watch is gaining 6 minutes every hour, for every real hour that has passed, the watch will show 66 minutes.
So, 506 ÷ 66 ≈ 7.666 real hours have passed.
This equals 460 minutes, which is 7 hours and 40 minutes = 7:40am.
The watch stopped 30 minutes ago, therefore the time must now be 8:10am.
??
Puzzle 518
I am a 10-letter word.
My 9, 6, 1, 2 is something a swimmer might do.
My 5, 4, 4, 3 is not that hot really.
My 7, 4, 3, 2 is a long piece of wood.
My 7, 6, 8, 5, 10 is a small part of something.
My 3, 4, 1, 10 is a deep affection.
My 7, 6, 8 is something you can eat.
My whole is an old form of transport.