[Pokerfarian]

I'd fold preflop. KQo doesn't do very well against a UTG limp. A raise would be to ~400ish {or shove} and raise/folding to a shove is bad, & comitting all your chips with KQo here is also bad. So you can't profitably raise. KQo also doesn't do very well in limped pots. I'd overlimp KQs here. Flop, slowplaying makes sense.
Your line is pretty common but I never understand it. People just call last to act on the flop because their slowplaying, then lead turn on a blank. It's not actually an awful line, it just seems slightly inconsistent. I think I'd check turn, then if he bets again just shove because he'll be comitted.