Puzzle ZJXK 

Workings

Hint
How many watch minutes pass in a real hour?

Answer
8:10am.

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.