A virtual touch knob assembly is provided that translates sensed movement of a user's fingers around a knob into control signals for operation of an appliance. A knob is provided on a user control panel of an appliance. The knob is fixed, i.e., does not turn or rotate. A system is provided that can sense the user's fingers moving around the fixed knob and translate the sensed input to control signals for setting the operation of the appliance or device.