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The units for torque, as you stated, are Newton-meters. Although this is algebraically the same units as Joules, Joules are generally not appropriate units for torque.
The equation for Torque is: Tq=Force X Lever Arm Distance. So it is the amount of force applied over the length of the lever arm measured from the fulcrum to where you applied the force. In the case of an engine, this would be the force the piston and rod applied on the crank, multiplied by the length of the crank arm.