Achieving hair shaving sharpness should not be a problem So I think that you are not fully hitting the apex before you progress to the next grid. Here are some things to try.
Color the entire bevel of the knife with a Sharpie and then with the fine stone, give a few light strokes on each side and have a close look, preferably with a loupe and see if it has removed all of the ink. This will show you if you are using the correct angle and reaching the Apex. If there is still ink left on the bevel than you know that these spots need more work. Use light pressure and let the stones do the work.
Starting with the coarse stone, make sure that you raise a burr which you can feel along the entire edge (on both sides of the knife) before progressing with a finer grid.
If you do not feel the burr, you are not hitting the apex and your knife will not get sharp!
Once you created a burr on both sides your knife will be very sharp but it will have a toothy edge which is great for tasks like cutting rope or a tywrap where you want the edge to bite into the material and not slide off but it would not feel great on your skin if you would try to shave with it.
Continuing with finer grids will refine the edge, removing the scratches of the previous stone and giving it a smoother feeling and more polished look and making it more suitable of cutting other materials like paper. Once you understand the process you will easily be able to create arm-hair shaving sharpness with the medium stone but it will still be relatively toothy and you would not be able to comfortably shave facial hair with it so for that level of sharpness you would continue to use finer grids and ultimately stropping with strops and diamond or CBN compounds.
However, I think it was a french knife-maker who when asked why his knives were not shaving sharp, said something like "I do not cut my food with a razor and I do not shave with a kitchen knife"
I hope this helped but if not than you could contact Ron from KME as they are very supportive of the product and always available for advise.
Here is a picture of a knife that I sharpened with the KME a few days ago.
I used the 300, 600 and 1500 grid diamond stones followed by the black Arkansas and the Kangaroo leather strop loaded with 3.5 micron diamond compound.
The knife will easily push-cut the very thin cigarette paper and has a beautiful mirror finish. Click on the picture to see it in full resolution.
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RR228_KME_01 by
Frans van de Kamp, on Flickr[/IMG]