Listening while recording

Using Audacity 2.0.6 from an .exe installer file
running Windows 7 on PC

Is there a way to listen to the recording while recording?
I have tried both speaker and headphones, neither seem to work.
Have gone to the sound control panel and adjusted (correctly I hope), no difference.
What am I doing wrong?

Audacity > Edit > Preferences > Recording > [X] Playthrough.

However, that’s not going to work if you’re doing sound-on-sound overdubbing. The headphone sound will be late and throw your timing off.


thank you