That's how you would normally set your course, set the graduated bezel to have the desired heading at 12 o'clock on the bezel/compass and turn until the cross-ended needle points to N (somewhere else around the bezel).

Conversely, to find out what heading you are actually flying turn the graduated bezel clockwise until N aligns with the (cross) end of the needle. Your heading is what now shows at the 12 0'clock position of the compass/bezel.

Yup, it works. Mistaken on my part - didn't see the mag compass behind the stick so I assumed a flux valve of some sort. I'll go hide in shame now. :)

To make up for my rather hasty post, I checked whether there is gyro drift. There is, at around 15 deg/hour. Nice!