I got a lot of correct responses for this puzzle. My real intent was to see how children/ other people can apply a concept learnt earlier to new problems. Many people sent me correct answers that include Anupam Jain, Abhinav Jain, Suman Saraf, Anubhav Garg and Girish Tutakne.

In Puzzle #74 (https://alokgoyal1971.com/2014/09/21/solution-to-puzzle-74-overlapping-clock-hands/) we learnt a concept that can be applied to this puzzle. Essentially, we learnt that in a 12 hour period, the clocks overlap exactly 11 times (and not 12 times). All these occurrences happen at equal intervals of about 1 hour 5 minutes 57 seconds. All one needs to do therefore is to move the hands of the clock forward until they overlap, keep the watch at the center of the pizzle and cut in the direction of the overlapping hands.

Hope you all enjoyed the puzzle!