Ah.. sorry I assumed hommade rotary encoder, with optic sensor and black and white pixels (perhaps on the backside of the dial).
But of course you can buy rotary encoders that do the job for you,
you could try sparkfun.com, but I think theres are not suiteble and threre is digikey.com and all the robotics shops.
And Yes the rotary-encoder is for feedback, it counts the steps the needle travels on the dial, could be timed so you have x ms between black or white (or just counts the time between signals if you would) and you stop the needle say 156 ms after signal nr. 66... and so on...
Google rotary encoders, often there are patterns for "total" knowledge of where on the circle one is.
Still easyest is the salvaging of a scanner/printer stepper.
D.