NuWatch.exe Malicious - Causing Steam to Minimize

[Kaoruko]

I've been around circles with Steam support about this issue. Every now and then I'll get this VERY tiny popup in the middle of my screen. It has no title or anything, it appears to be just a border. It seems as though it has been stealing focus from my full-screen games; and using an XBOX controller is nigh impossible.

On rare occasion this will popup as a blank window titled "NuWatch", though I can never see this jump to the top of task manager when it occurs.

I haven't found anything in Malwarebytes scans, nor ANY info online about this file. Is this malicious, or if not, what the heck does it do on my system?

 

[Golden]

Its not neccesarily malicious:
What is this exe file? Is this file safe? Check the directory

What applications do you have running in the background?

 

[Kaoruko]

Generally when I run Steam I just have it open. Other times I have it and Chrome / Firefox open.

Screenshots of running processes:
1 - http://puu.sh/2jfik
2 - http://puu.sh/2jfiR

 

[Layback Bear]

If I may just a little note.

http://www.sevenforums.com/tutorials/9733-screenshots-files-upload-post-seven-forums.html