Sounds like you did everything just right with the exception of measuring the temperature, but it's probably only a matter of a few points. Doublecheck what temperature you hydrometer is calibrated for...it could even be as low as 62F.
You read the correct scale, the other one is Plato and you can use it, as well, but most homebrewers refer to the scale you read.
The alcohol scale is a differential scale, so you'll have to take a reading at FG and subtract from your 7% to get the abv of the beer, or you can figure it out using the OG and FG readings and a formula.
FG will likely be in the 1.010-1.015 range, but I don't know anything about that recipe.