Pleases view the PDF for BOM and assembly. Bellow are the part that I purchased and used. I will upload the code i used.

XIAO ESP32-S3
https://www.aliexpress.com/item/1005006115570414.html?spm=a2g0o.order_list.order_list_main.28.7fec1802fwOTyz

MT6835 Magnetic Encoder Module
https://www.aliexpress.com/item/1005008191455426.html?spm=a2g0o.order_list.order_list_main.80.7fec1802fwOTyz

If anyone smarter than me can figure out how to get this device to connect to windows via Bluetooth because windows keeps blocking the device and wont register it as a HID device.

I want to design a battery version but for now it is wired sorry.