It looks awesome.

I'd go with the forge or the torch because I'm cheap and impatient. Most steels will require a minimum amount of time in the austenite phase so that the structure becomes uniform, but the longer you leave the knife in the forge, the outside layer is covered in carbon. Underneath this carbon, (depending on how long it's in the forge) will be a rough, sometimes pitted blade. Because of this, if you want a smooth, polished finished product, I would leave the blade edge a little thicker going into the forge than I want the finished blade to be. I usually leave mine in for 20-30 minutes. This forms a nice black rough finish that is quite rust resistant and not too difficult to sand out if desired.

My first knife was made out of an old hacksaw blade and it took an edge very well (quenched in used 10w30). Who knows what kind of steel it was?

You'll probably be surprised with the steel you have esp for the price.

-mike