I apply my satanite to the blade.. thin.. 1/8". If it's too thick you get more of an insulation effect..rather than just keeping the quenchant off the blade. Apparently you get a less complex hamon if you go too thick. But I've always applied thin.. so I don't know for sure. Use a torch to dry it out to prevent pre-mature popping off. If I haven't already normalized, then I do so. Grain refinement is very important for hamon development. Then I do a full blade critical quench.
I've recently learned that you get MUCH more activity on shallow hardening steels if you have ground 99% finish before quench. You CAN actually grind away the finer aspects of the hamon.