Can I muck it anywhere?

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I think this is awful. If he has a hand we are beating, such as JJ or AK (you said these were pretty likely), we should allow him to bluff.

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Would you then raise the turn? I guess I hate calling down because if you are ahead, you are missing value.

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If your plan to 3-bet and fold the turn UI if he caps seems really bad, considering he sometimes has AQ, and you are giving up half of a pretty good pot.

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That's a fair point. I have a hard time seeing an oop cap from a TAG, but it's not out of the question, obviously.