Rotate LOCAL y axis to match Joystick input

![alt text][1] [1]: /storage/temp/87798-rotationproblem.jpg

I would like to control the LOCAL Y rotation axis of a object with a joystick.

Currently i have:

 float angle = Mathf.Atan2(joystick.currentDir.x,joystick.currentDir.y) * Mathf.Rad2Deg;
 rotLookAtTrans.transform.localRotation = Quaternion.Euler(0, angle, 0) * quaternionOffset;

"quaternionOffset" is my rotational offset that i would like the object to have. But that code rotate's the object around the worldspace axis. Anyone has any advice. Have been trying to figure this out for days now. THANKS in advance