Hi!
I took my time and figured out how to make the tuya smart knob work smoothly with dimming lights and happy to annouce it’s possible!
Here’s my manual on how to get it working: TheUnlimited64/tuya_smart_knob_blueprint
It requires a little change with zigbee2mqtt due to not having the property exposed into home assistant.
But with that change we’re getting a positive and negative value when dimming. The event mode is very slow to respond, command mode is way better.
Maybe someone can create an even more advanced blueprint than mine (was a pain to get it working lol).
@rdeangel @pbergman maybe check it out 
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I’ve added a new feature to the blueprint and zigbee2mqtt. It now allows for color_temperature control action, that enbles color temperature control of your lamp, or control other devices brightness, volume etc.
In my example I’ve used the action to control the brightness of my led strip, but you’re free to use it for volume control, color temperature control and anything else.
I’ve also included an example for color temperature control, because it wasn’t straight forward (atleast for me).
Check it out: TheUnlimited64 tuya smart knob temperature control