If testing for spark, can remove plugs and spin the flywheel by hand or use the manual method you were initially using. With your spark tester hooked up, motor in neutral, key switch in run position, you should see spark. You could also unplug the wiring harness, and spin it -- similar to what you did on the sawhorse (but with the tester hooked up and plugs out).
Spinning fast enough to fire up the motor is a different matter -- presumably were able to do that before if you got it running. Would need to replicate -- but not healthy for the ignition system if you get it to run without a battery or with a dead battery. You didn't have the starter switch connected earlier (no harness), as I understood your description. If you lost spark now using your manual starting method, probably fair to assume it's a key switch issue -- or perhaps the motor isn't in neutral.
Best bet would be to find a fix for the electric starting system, IMO. Can check the starter by briefly jumping it from a good battery. If the starter is operating, need to look for a wiring flaw in the starting circuit. There may be an ignition problem surfacing now, but harder to diagnose without the starting system.
edit. might have misuderstood your post -- moved to testing elec. starting system?