Algodoo

Inspired by a YouTube video, made it within 30 minutes.
The numbers are indicated with red pointers.
To set the time: use left and right arrow keys. Speed up the simulation if necessary.
Reading the time: the hour is whatever the needle points at. Later into the hour, the needle may be pointing closer to the next number. Don't get confused. If the needle is counterclockwise of the next number ON THE HOUR WHEEL ONLY, read the previous number.
The minutes are displayed in 5-minute increments. Read the minute wheel as normal. If ouy're really good at eyeballing, you can read the time to the minute.