(grunch)

preflop: Your cap is not folding anybody who has already called 2-3 cold, so it is not for protection, it is for value. Personally, I think KQ (sooted or not) is overvalued from EP. I would not be capping as a default play. Against a lag, it is probably OK for value if you think his 3-betting range is sufficient. Sometimes they are laggy on their pre-flop raise, but exercise more caution in 3-betting. If he's been maniacal pre-flop then by all means.

flop: wow, BB bets out on this flop after calling 2 cold and seeing your cap! You have to figure that is a bold move. The raise is appropriate for protection, but you have to wonder if you're behind if BB were to 3-bet. You have lots of redraws tho (OESD & BDFD), so calling a 3-bet is fine.

turn: nice raise. Call down a 3-bet, river an ace, and hope he doesn't have the flush or made straight. That is a nice pot.

river: gotta wonder if lag is tilting off the stack here or he slow-played AQ. I would probably just call the raise.