Weird, frustrating live situation

[thatpfunk]

$2-4nl Sycuan casino

Effective stacks:~$400

Villian is a young guy, plays kind of funky. He has been limping with a lot of good hands and complaining about missing with big A's. He has raised twice but not showndown either hand. He is pretty nice and the table has a fun atmosphere. I think he enjoys the social aspect of the game moreso than the money.

My image is okay. I have been lagging it up, goofing around, but I think the table has some definite respect for my game. I have stabbed at quite a few pots, etc but not showndown any donk plays.

NLSoiler is UTG and live straddles.

I call UTG+1 with K [img]/images/graemlins/diamond.gif[/img]9 [img]/images/graemlins/diamond.gif[/img]
Random people limp, soiler min raises, call.

Pot: $45
K [img]/images/graemlins/club.gif[/img] 4 [img]/images/graemlins/club.gif[/img] 9 [img]/images/graemlins/heart.gif[/img]
Checked to me, I bet $35. As I am cutting my bet, Villian says "Be careful, I have a King..." He calls, all others fold.

Pot: $115
K [img]/images/graemlins/spade.gif[/img] (K [img]/images/graemlins/club.gif[/img] 4 [img]/images/graemlins/club.gif[/img] 9 [img]/images/graemlins/heart.gif[/img])
Once the K peels off he says, "Oh now theres no way you could have a king!" I act awkwardly and bet out $35 quietly.

He min raises to $70. I am kind of hem and haw while cutting my chips to try to figure out how best to get the money in. While I do Villian flashes his K and shrugs, trying to let me know to fold...

How best can I get the money in now that he knows, I know, he has a K? WTF is my plan of action?