NL10 - KQs - Let the shortstack take over?

[KingOtter]

UTG was unknown... SB was, too (in fact SB doesn't even show up in my db for some reason, hrmm).

PokerStars $0.05/$0.10 No-Limit Hold'em - 5 players
Hand Converter Tool from DeucesCracked.com

BB: $10.00
UTG: $4.15
CO: $3.10
Button: $6.75
SB: $10.05

Preflop: Hero is BB with K[img]/images/graemlins/diamond.gif[/img], Q[img]/images/graemlins/diamond.gif[/img]
UTG calls $0.10, CO folds, Button folds, SB calls $0.05, <font color="#FF0000">Hero raises to $0.50</font>, UTG calls $0.40, SB calls $0.40.

Flop: ($1.50) 5[img]/images/graemlins/heart.gif[/img], K[img]/images/graemlins/spade.gif[/img], 2[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(3 players)</font>
SB checks, <font color="#FF0000">Hero bets $1.25</font>, UTG calls $1.25, SB folds.

After he called the bet and I looked at his stack I saw he had $2.40 left. He called the bet so I thought if I bet it might scare him into a fold. I'll check and see if he bets it...

Turn: ($4.00) 4[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#FF0000">UTG bets $1.20</font>, Hero calls $1.20.

He did, goodie! I thought about min-raising him all-in here, but I thought I'd see what happened on the river.

River: ($6.40) 3[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#FF0000">UTG bets $1.20 (all in)</font>, Hero calls $1.20.

Final Pot: $8.80

Cool, he bet it all-in.

Was this too passive? Should I have bet earlier?