Reinstalling a new VM; Parallels using previous deleted VM image cache?

Hello, I'm new on the Macbook Air and also on Parallels 10; installed Windows 8.1 on the laptop with Parallels (I installed it on an external drive) and it was running smoothly without any problems whatsoever.

Though recently, I accidentally removed and deleted of the .pvm file in the external drive by mistake, and prior to that Windows was running on Sleep mode (as I was rushing to get to somewhere). Regardless, I've tried to reinstall a new VM but Parallels keeps reading the previously installed Windows that I have accidentally deleted, with exactly the same VM name whenever I use a new .iso file to boot. On my external hard disk the space left also shows that there is a partitioned space for the previous Windows (based on the remaining space when I select that same hard disk to install a new VM).

How do I actually clear the partition and also reinstalling a new VM? I've tried formatting the hard disk as well but it still leads to the same problem.