This paper introduces the sparse modular addition task and examines how transformers learn it. We focus on transformers with embeddings in $\R^2$ and introduce a visual sandbox that provides comprehensive visualizations of each layer throughout the training process. We reveal a type of circuit, called "clustering heads," which learns the problem's invariants. We analyze the training dynamics of these circuits, highlighting two-stage learning, loss spikes due to high curvature or normalization layers, and the effects of initialization and curriculum learning.