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I only play NL2, so please keep in mind that I have probably no clue what I'm talking about.
I would just fold KTo if SB isn't super aggressive, but that might be just me. Calling in position is fine too.
Flop: Raise more. A general rule is to raise 3x the amount of his bet, so you should have raised to $1.20
Turn: I like a check more in order to keep the pot small, because all we have right now is top pair with a not that great kicker. He could easily have a set, AK, KQ, KJ, K9 and if he is loose even K7. If you decide to bet, I would bet larger, maybe 1.70 or 1.80.
River: As played I think this is a fold wihout reads.
We need 34% equity and there aren't that many hands we can beat. Actually we only beat K8, K5, K3, K2, QQ, JJ, TT, 88, 55, 33, 22 and a busted flushdraw or straightdraw. A flushdraw is unlikely because of the action on the flop and he only picks up the flushdraw on the turn. A straighdraw (like 56) wouldn't bet the flop. K2-K8 wouldn't raise preflop. And 22-TT would either fold flop or turn. What is left: QQ and JJ.
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