Serious problem with Hangman.java

import java.util.Scanner;
import java.util.Random;

public class HangmanMy {
  public static void main (String[] args){
    System.out.println("\t\t\t\t\t************Welcome to Hangman*************");
    Scanner input = new Scanner(System.in);
    boolean done = false;
    String guess;
    String guesses = "";
    char letter;
    int wrongGuess = 6;
    StringBuffer dashes;
    System.out.println("\nChoose a category -> places / games / animals / subjects ");
    String words = WordsToChoose(input.nextLine());
    dashes = makeDashes(words);
    while (done == false){
      System.out.println("Here is your word: " + dashes);
      System.out.println("Guesses so far: " + guesses);
      System.out.print("enter a guess (letter or word): ");
      guess = input.next();
      // process the guess
      
      if (guess.length() > 1)
      {
        if (guess.equalsIgnoreCase(words))
          System.out.println("You got it, Good Job!!");
        else 
          System.out.println("Thats not the word, the word was: " + words);
        done=true;
      }
      else // process single letter guess
      {
        letter = guess.charAt(0);
        guesses += letter;
        if (words.indexOf(letter) < 0)  // not there
        {
          wrongGuess--;
          if((wrongGuess <= 5)&&(wrongGuess >= 1)){
            System.out.println("Guesses left: " + wrongGuess);}
          else if(wrongGuess == 0){
            System.out.println("Too many Guesses,The real word was: " + words);
            done = true;}
        }
        else // letter is in the words
        {
          matchLetter(words, dashes, letter);// put it in dashes where it belongs 
          if(words.equalsIgnoreCase(dashes.toString()))
          System.out.println("\nYOU WIN!!!!!!");
        }
      }
      while(done == true)
      {
        System.out.println("\nDo you want to play again?");
        String answer = input.next();
        
        if(answer.equalsIgnoreCase("no")){
          System.out.println("GOOD-BYE, THANKS FOR PLAYING"); break;}
        else if(answer.equalsIgnoreCase("yes")){
          done = false;}
      }
    }
  } 
  public static void matchLetter(String words, StringBuffer dashes, char letter)
  {
    for (int index = 0; index < words.length(); index++)
      if (words.charAt(index) == letter)
      dashes.setCharAt(index, letter);
    System.out.print("Good guess: ");
  }
  public static StringBuffer makeDashes(String s)
  {
    StringBuffer dashes = new StringBuffer(s.length());
    for (int count=0; count < s.length(); count++)
      dashes.append('-');
    return dashes;
  }
  
  public static String WordsToChoose(String category)
  {
    Random generator = new Random();
    String name = "";
    if (category.equalsIgnoreCase("places"))
    {
      String places[] = {"Barcelona", "London", "Paris", "Toronto", "Vancouver", "Frankfurt", "Sydney", "Florida"};
      name = places[generator.nextInt(8)];
    }
    else if (category.equalsIgnoreCase("games"))
    {
      String games[] = {"BoderLands", "Halo", "FIFA", "GTA", "HITMAN", "Skyrim", "Minecraft", "Zombieville"};
      name = games[generator.nextInt(8)];
    }
    else if (category.equalsIgnoreCase("animals"))
    {
      String animals[] = {"eagle", "tiger", "lion", "Jaguar", "rhinoceros", "sharks", "dolphin", "whale"};
      name = animals[generator.nextInt(8)];
    }
    else if (category.equalsIgnoreCase("subjects"))
    {
      String subjects[] = {"Physics", "Tech", "Chemistry", "Gym", "English", "Religion", "Biology", "Math"};
      name = subjects[generator.nextInt(8)];
    }
    return name.toLowerCase();
  }  
} 

My second while loop has a problem: when i say yes to play again, it doesn't reset the game, it jus goes back where it left of with
I been trying to solve it for 5 days