Embodied reasoning systems integrate robotic hardware and cognitive processes to perform complex tasks typically in response to a natural language query about a specific physical environment. This usually involves changing the belief about the scene or physically interacting and changing the scene (e.g. 'Sort the objects from lightest to heaviest'). In order to facilitate the development of such systems we introduce a new simulating environment that makes use of MuJoCo physics engine and high-quality renderer Blender to provide realistic visual observations that are also accurate to the physical state of the scene. Together with the simulator we propose a new benchmark composed of 10 classes of multi-step reasoning scenarios that require simultaneous visual and physical measurements. Finally, we develop a new modular Closed Loop Interactive Reasoning (CLIER) approach that takes into account the measurements of non-visual object properties, changes in the scene caused by external disturbances as well as uncertain outcomes of robotic actions. We extensively evaluate our reasoning approach in simulation and in the real world manipulation tasks with a success rate above 76% and 64%, respectively.