This exact play was something Eric keyed me in on when I had him look at my play, and I've been very successful with it.

Another point on this. "I know that you know that I know...". Once you get comfortable using this, you can recognize it and turn it around on someone making the move on you. Last night sitting live, I saw the table bully do it to the guy on my immediate left on a steal raise from the button. The next time around, I steal-raised from CO. Bully calls the raise, checks the flop, I bet, he pops, I reraise knowing exactly what he's doing. He lays it down. My cards were 97s and had completely missed the flop ;-)