If you think the watchdog is running OK, and want to test that it really is capable of recovering a crashed system, then you can do one better than Shawn's answer by using the "magic sysrq" to crash the system with a kernel panic. Syncing your file system first is a good idea, so do something like this as root:
sync; sleep 2; sync; echo c > /proc/sysrq-trigger
sync; sleep 2; sync; echo c > /proc/sysrq-trigger
That should cause a kernel panic if the sysrq is enabled. Then if you wait around 60 seconds (typical time-out for the watchdog module) you should see the machine reboot. Please note this will only work with hardware watchdogs and not the 'softdog' module.