I think you are right that you could go bigger pre flop but also 40c from CO feels value heavy and I am suspicious of what he has.
I've not looked at a solver or anything but I think you want to check range and then call if he bets the flop w QsQx on a monotone board because you block the flush and it's hard to get more than 2 streets of value from QQ.
As it is you're on a rodeo of a hand and you should probably get off. It's hard to see what you're beating here.

I agree a bunch with Mactece.
Preflop you can go bigger. General rule that people seem to do is preflop 3-bet to 3x when IP, 4x when OOP. In this case it would be 16BB.

This flop isn't that great for us. We have less sets and both players have around the same amount of strong nutted hands. Although the middling flush cards are better for us by a small margin. Being OOP I would go for a check here.

Though spot you're now in. I would go with a fold. If he's bluffing me he's bluffing me.