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If this plays anything like the live games I've played, raise more PF.

You cannot fold this hand, and calling that bet is essentially all in.

Only a complete fish would call an UTG raise with KT, and I highly doubt he calls the flop with a gutshot (8T). While I don't think it's entirely unlikely that this player IS a complete fish, there are plenty of other hands he might think are good. (Two pair, another set, etc.)

If he does, well, at least you have outs.

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Looking back, that's what I'm thinking as far as raising more PF. Like I said in OP, my forte is tournys, not cash games. Taking that into consideration, I probably should have bet more postflop as well. In cash games, are pot sized bets usually the norm? Is anything less considered suspicious?