critique my setup -- weak link? best way to improve?

How much do you want to spend? What kind of sound are you looking for?

You can upgrade your KG2 to KG3.2's on the cheep also there are a ton of upgrades for these speakers that make a huge difference. 

While the T1 is a ok TT, there are also upgrades for that, really you don't want anything with a built in phono, there are a lot of low cost good phone pre's out there.  You can also "upgrade" to a Carbon Debut Evo, but not sure how much of a real upgrade it is. Best bang for the buck there would be to upgrade the cartridge. What do you have now? My first TT was the Debut Evo, once I upgraded the needle it made a huge difference. I have the Suimko Rainier cartridge, a simple needle swap to the Olympia needle, was so worth the cost. After a while decided I needed a quieter and more robust TT, so upgraded to X2, so happy with that. 

Blue Jeans cables are great, don't let anyone else tell you otherwise. And upgrade would be to get their speaker cables as well.

Not sure where you live, but Craigslist and Facebook Marketplace are great places to pick up good used gear. I see good TT's, phono stages, a ton of Klipsch speakers. 

get a schiit preamp , Best value ever.

@matthijs 

First of all as others have alluded, what is your budget either for total or how much potentially a year if you were looking to do it in steps.

If the latter is your route, as below its obviously going to be important for you to take steps that are immediately benefitting without the upgrade just being the limiting factor a few steps later.  I note in saying that you will have seen here you can 'always' find something extra to change. But what you want is to not feel the need to go around the loop again within what you were happy to spend overall.  If you find that hooks you into listening to more and more, then perhaps a second loop is worthwhile.  

Having got my system to a point where several of my personal TT System components were used at the UK HiFi show and there was little at the show to touch it. I have spent much of my 'available tinkering time' in the last year assisting friends and family to get a 'good proportion' of what mine can do for a cost effective price.  So I would give some suggestions for which parts to change based on that work that would fit in that budget, with "if you wanted to continue after, the next thing would be".

A question to start. Does the Project T have something like an Ortofon 2M Red or the "Project Pickit" cartridge / stylus? As that can have some influence on some early options.  If not which stylus is it. 

A separate phono preamp, definitely.  Schiit is a good recommendation for a budget price.  If the speakers *must* stay on the credenza, then get some desktop stands for them, they'll sound much better. IsoAcoustics are popular.  Otherwise separate stands will improve things a lot.  Between those two fairly inexpensive changes I think you'll get more enjoyment out of the current system.

If the speakers *must* stay on the credenza

I pretty much ignored this part. If you want good sound don't let the furniture determine it, proper stands and placement are literally the easiest and cheapest tweaks of the system and the best bang for the buck. 

If you are forced and willing to compromise with the placement, you are probably not crazy about achieving the best sound. And nothing wrong with that....