I tend to run into this spot daily and I am not sure whether I am playing it correctly on either street.

Poker Stars, $0.10/$0.25 No Limit Omaha Cash, 6 Players
Poker Tools Powered By Holdem Manager - The Ultimate Poker Software Suite.

BTN: $21.72 (86.9 bb)
SB: $11.95 (47.8 bb)
BB: $24.20 (96.8 bb)
UTG: $31.62 (126.5 bb)
Hero (MP): $52.30 (209.2 bb)
CO: $34.17 (136.7 bb)

Preflop: Hero is MP with Th Kc 8h 9c
UTG folds, Hero raises to $0.75, CO folds, BTN raises to $2.60, 2 folds, Hero calls $1.85

Flop: ($5.55) 8s Ts Qd (2 players)
Hero checks, BTN bets $3.50, Hero raises?

No hands on the Vill.

I find at these limits their range is generally weighted towards AAxx here so I think this is a standard call pre with about 40% equity assuming not raising all AAxx.

I check as my hand is vulnerable and if I donk I feel it allows them to play their range correctly by flatting IP, whether AA or solid combos, also keep the SPR high with me OOP and a lot of awkward turns for me to continue on where I am completely guessing. Given this reasoning I feel it should be a XR or XF.

XF feels terrible since I have 60+% vs his range, but when I XR do I just isolate myself against the top of their range on these boards which makes it a very thin move? if I do XR what is the correct sizing? Is it better to flat flop and assess on brick turns? - if brick better to go for X, XR or donk? X is giving them too much equity IMO, XR risking they check their SDV hands behind, donking might work?

Thanks in advance for any and all feedback guys. Cheers.