We present a novel approach for simulating hardness and stiffness using an Encountered-Type Haptic Display (ETHD) with a dynamic end-effector. Addressing limitations in existing haptic rendering methods, our system allows dynamic adjustment of displayed hardness and stiffness. We conducted two experiments to assess users’ perception of virtual blocks’ hardness and stiffness using our device. Results indicate that physical hardness is a more salient feature than rendered stiffness. Evidence of stiffness masking was observed, particularly in high-hardness objects. Regardless of touch method (bare finger or stylus), participants were able to discern hardness and stiffness differences, with users finding it easier to distinguish hardness when tapping using a stylus.