CC on button with KQo

[Losfer]

This was a hand I was discussing with some other people and I was hoping to get the collective wisdom of 2+2. It' the fourth hand at the table, so there is no read.

Full Tilt No-Limit Hold'em, $1 BB (6 handed) Full Tilt Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

UTG ($124.55)
MP ($135.15)
CO ($32.65)
Hero ($80.85)
SB ($132.25)
BB ($100)

Preflop: Hero is Button with Q[img]/images/graemlins/spade.gif[/img], K[img]/images/graemlins/club.gif[/img].
<font color="#CC3333">UTG raises to $3.5</font>, <font color="#666666">2 folds</font>, Hero calls $3.50, <font color="#666666">2 folds</font>.

Flop: ($8.50) 7[img]/images/graemlins/club.gif[/img], Q[img]/images/graemlins/heart.gif[/img], 3[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG bets $6</font>, Hero calls $6.

Turn: ($20.50) K[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
UTG checks, <font color="#CC3333">Hero bets $12</font>, <font color="#CC3333">UTG raises to $36</font>, Hero calls $24.

River: ($92.50) T[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
UTG checks, <font color="#CC3333">Hero bets $35.35 (All-In)</font>, UTG calls $35.35.

Final Pot: $163.20

Everyone agreed that the hand was played poorly but there was no consensus on what the correct line should be.

Thanks.