I believe that the simulator programs do distinguish between the cues from an engine stall/surge alone and "severe damage"
What's not severe damage is an engine that recovers immdiately from a stall/surge with only a bobble in the N2 and EGT (N2 drops and recovers and EGT goes up slightly and then drops)
Most severe damage cues include N1 not responding to throttle and EGT through the roof with perceptible increased vibration and/or fire warning bell
Some SOPS suggest you should pull back on the engine throttle (assuming you have correctly identified the single engine), after confirming that the EGT has not sky rocketed go ahead and advance the throttle.
Do not grab both throttles and do take your time and fly the aircraft first
The problem with the simulators is that they can not replicate the magnitude of the sound or vibation without damaging the simulator (they are fixed to a floor) as repeated test runs are as bad to simulators as they are to engines.
Couple that with the shock load to the pilots seat as the yaw develops as fast as hitting a telephone pole. I was in F class once B747 AI Bom-Del and I sprayed my drink across the cabin.