The puzzle was (apologies to the interviewer, but it IS a common puzzle) the eight ball and balance problem, where one ball is heavier than the other seven and you need to use a balance scale to find the lightest of the balls in the minimum number of weighs. I'd heard of the puzzle but never worked it out. I initially jumped to the 3 weigh solution, but the interviewer challenged me to keep looking, so I kept thinking and I found the 2 weigh solution. He then asked me to write code that could solve the 8 ball problem. Pretty straightforward. Once I finished that, he had me adopt it to be able to handle [edit: any number of] balls. This tested my ability to abstract my code. Finally, he asked how I would go about testing the program and we talked through that.
I cannot wait to steal that progression when I end up doing technical interviews someday.