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I think I'd have raised the flop.

As for the turn, you've got 8 to 1 odds. You only need 10.5 to 1 to draw to a full house. Anybody think that his 7 outs are good and he can make up the 2.5 bets on the river if he fills up? Probably not...

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How do you get 7 outs? I only see 4 (2xK & 2x7)

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Read through this post again. Someone already mentioned why.

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I see. i thought he meant 7 outs! not are the two 7s counted in his outs.