[chopsticks]

This is NL10 after all so folding preflop isn't the only right choice. I've tried several different strategies in microlevels and you can even make money with vp$ip 70% if you know how to play postflop since players at these levels are so bad and they payoff good hits well. A friend of mine who dominates NL400-NL1k also tried to play microstakes as loosely as possible and he approved this strategy as an option for ultra tagish play.

So playing with KQo from the utg is not a crime although I would recommend you to fold it or just limp in and call a raise if youre not good at postflop. It has a lot of potential if flop comes something like this and most of the times you double up through TJ, AA etc.

But i would definitely 3-bet the flop. Theres a flush draw and CO goes all-in and MP2 looks like he likes his hand. 3-bet the flop and push the turn and youre doing fine, you could also push the flop since you get easily called with QJ, KJ, AJ, JT. The fact that MP2 is being passive doesnt necessarily mean hes weak and refuses to go all-in on the flop.