Code not updating when running on the simulator

I have a problem with the code not updating when I select "Run"->"Start debugging" 

For example, I will place a debugging output like

System.println("Test");
and this will not show up at all in the Debug Console. Does not matter if I restart the simulator, or delete the apps in the simulator and run again.
For me to see a change, I have to select a completely different device in the simulator. 
Has anybody experienced any issue like this?