Code:
import java.util.Scanner;//imports a Scanner Class
import java.util.Random;//imports a Randomizer

public class HangmanMy {
  public static void main (String[] args){
    System.out.println("\t\t\t\t\t************Welcome to Hangman*************");//Intro to the game
    Scanner input = new Scanner(System.in);//Instalizes a new Scanner called input 
    boolean done = false;//new boolean variable done that is set to false
    boolean reset = true;//new boolean variable reset that is set to true
    String guess;//new String Variable guess
    String guesses = "";
    char letter;//new char variable
    int wrongGuess = 6;//new interger variable wrongGuess that stores the value 6 in it, which is the max wrongGuess the user can have
    StringBuffer dashes;//new StringBuffer variable dashes
    while(reset == true){
      System.out.println("Choose a category -> places / games / animals / subjects ");//Asks the user what types of word they want
      String words = wordsToChoose(input.nextLine());//creates a new String and itand chooses the word from the method wordsToChoose from the answer given
      dashes = makeDashes(words);//makes dashes for each of the letter in the word
      done = false;
      while(done == false){//when done is false, it does this
        System.out.println("Here is your word: " + dashes);//prints out the word in dashes 
        System.out.println("Guesses so far: " + guesses);//the guessess the user made so far
        System.out.print("enter a guess (letter or word): ");//this asks the user to enter a guess
        guess = input.next();//takes the answer
        // process the guess
        
        if (guess.length() > 1)//if the length of the answer was more than 1 letter it will do this:
        {
          if (guess.equalsIgnoreCase(words))//if the guess was the word
            System.out.println("You got it, Good Job!!");//it prints out this on the screen and the games ends
          else //if it dosen't match the word
            System.out.println("Thats not the word, the word was: " + words);//it prints out this on the screen and the games ends
          done=true;//now done is true so the loop will stop
        }
        else // if the user only puts a letter it will process a single letter guess
        {
          letter = guess.charAt(0);
          guesses += letter;
          if (words.indexOf(letter) < 0)  //if the letter given is not in the word it will do this:
          {
            wrongGuess--;//this takes out 1 wrongGuess from six everytime the user gets the letter wrong
            if((wrongGuess <= 5)&&(wrongGuess >= 1)){
              System.out.println("Guesses left: " + wrongGuess);}//prints out this when the wrongGuess are between 5-1
            else if(wrongGuess == 0){//when the wrongGuess becomes 0
              System.out.println("Not Bad! Unfortunately you're all out of guesses. My word was " + words);// prints out the real word cause there were too many guesses
              done = true;}//done becomes true and the loop stops
          }
          else //if the letter is in the words
          {
            matchLetter(words, dashes, letter);// put it in dashes where it belongs 
            if(words.equalsIgnoreCase(dashes.toString()))//if the user fills in the dashes using only letters it will do this
              System.out.println("\nYOU WIN!!!!!!");//print out you 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;}
          if(answer.equalsIgnoreCase("yes")){
            reset = true; break;}
        }
      }
    } 
  }   
  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 won`t work, what i mean is that when i say yes to play again it dosen`t reset,
could u please help