I would like to repair rather than replace this garden faucet. It leaks ever so slightly: a drop or two every minute.  I don't know how this valve works.  I tried to open it. The picture shows how far I got.  I do not see a washer.  Is there a washer and, if so, how do I get to it?  If no washer, how do I fix the leak? <P>

Update:
I must have misunderstood the instructions on how to remove the stem. I turned the faucet handle counterclockwise and the stem broke off. (See photo.) Please clarify: what should I have turned to remove the stem?<p>
[![broken stem][1]][1]

[![Faucet with cap unscrewed][2]][2]


  [1]: https://i.sstatic.net/h7qCP.jpg
  [2]: https://i.sstatic.net/C1QqA.jpg