Thanks for the reply, hammy.
I'm still trying to understand the language and I have been reading up (and watching videos). Not really asking to have someone write the code for me but hoping someone could maybe just guide me, I guess?
I've been reviewing the code and realized that the code is working on the serial monitor on Arduino IDE because the code just includes the "serial print" commands, nothing else. Windows does not recognize any other actions such as button presses because there's nothing else on the code for that.
I'm now in the process of researching for the correct code so that when the knob is turned clockwise, it will send a command that "x" button is pressed, and when knob is turned counterclockwise, "y" button is pressed. So if you keep turning the knob, there will be multiple button presses, which is exactly what I am aiming for 
Again, thanks everyone for the patience, and apologies if this post is too "noobish" bordering offensive