I think your leaving value on the table if you dont raise in this spot. His line could make sense for a lot of hands, not just KdXd....altough with no reads it is hard for us to put him on range of hands.

I think I raise to $4 and see what happens....if he pushes I might have to lay it down....but if he raises anything reasonalbe to say $10-12 then I think im calling. But that min-raise doesnt look like a scary K high flush to me.