I also think raising the flop here is good. I would probably raise the minimum, but you really need to try and get that PFRer to put enough money in, so that he feels tied to the hand. There are alot of cards that would shut down the PFRer if he doesn't have a hand or draw like any 5 or 9 and any spade. I think it's less likely he folds there with the than calls a reraise on the flop, and if he has an overpair like AA w/ the spade, he might feel tied to a big pot there and pay you off even if no spade hits the turn. Also, if you reraise here, the short stack with the set might just push in the rest that the PFRer will feel obligated to call. Most likely though, the PFRer IS going to get away from this hand on pretty much any level if he isn't a complete moron or doesn't have with all that 'interest' on the flop.

I agree with everyone else about the turn...bet $3-$4. PFRer expressed an interest in staying in the hand on the flop by calling a raise after you cold called...putting a little money in there is mandatory.