would like a sharp knife, so I don't get discouraged by slow progress.
There's another issue here that's more important than slow progress, a sharp knife is safer in use. This seems paradoxical but blunt (and blunter) edged tools require more force to push through the wood, and this tends to lead more easily to accidents.
In addition blunt knives are more fatiguing to use.... by quite a large margin sometimes, depending on the hardness of the wood you're working with.
And last but not least a very sharp edge leaves a superior surface on wood, so there are visual advantages too for the woodworker.
I was going to use the stone with water on it
There's a chance that the stone you have there isn't really ideal for sharpening this type of tool, sorry but it's impossible to be more definitive without knowing more about Kannametal stones in general (very little info online) but more importantly that stone in particular which of course we can't know.
Judging from the stones I have used I think it's a silicon carbide honing stone but it's impossible to tell its grit rating from looking at it. And in addition to grit rating the binder or 'matrix' is a critical factor in how a stone works and the quality of the edge it can produce.
You'll have to test it out and see how it works firsthand.
Stropping after using the stone will go a long way to refining the edge created however good it is, if you discover the stone is a little too coarse you may find it beneficial to get a finer stone or diamond plate. Remember this is based on a guess of the stone's qualities, if it works well don't think you need to spend more money on further sharpening supplies to chase the elusive "perfect edge".
Note: I have a suspicion based on its appearance that the stone won't work well with plain water, so add some dishwashing liquid to it or use a light oil instead. If you want to try oil no need to buy anything specially marketed for honing, baby oil works very well, is cheap, completely non-toxic and can be bought anywhere.
and try to keep the knife at a 20 degree angle to remove the chips and regain the edge. Is this the correct high level process?
Basically yes. Honing angle is the most critical thing to maintain to achieve good, consistent results.
In practice it's not as easy as it sounds however. You will very likely find it difficult to hold the same angle consistently as you hone, almost everyone does when they start.
Something that will help you a lot in checking whether you're honing at too steep or too shallow an angle is to colour the bevel black with a felt tip/permanent marker. This way the portion of the bevel in contact with the abrasive is instantly visible as a shiny line against the black, rather than trying to see a shiny line against other shiny metal.
Also, I have recently learned about stropping, but I am unfamiliar with it. Is the concept of keeping a 20 degree angle the same?
Essentially yes. You don't have to be quite as religious about maintaining the exact angle but if you can do so that's great.
Details on what works best when stropping relate to numerous variables including the strop surface (leather*, cloth or bare wood/MDF) and whether you're using a bare strop or one loaded with an abrasive material (stropping compound, metal polish, diamond paste).
Note: remember when stropping to always use an edge-trailing technique. You never push an edge into a strop like you do on a honing stone, you always draw it backwards.
Be sure you look at the list to the right of this page under Related for much good information on sharpening that you might find useful.
Two additional Answers I'd like to draw your attention to:
How can I tell if wood turning (lathe) chisels are sharp?
When sharpening, how do I assess what grit to start on? (specifically the section Little and often, this has particular relevance to whittling and chip-carving knives)
*Type of leather may or may not matter. If you're using bare leather the type of leather matters a lot, but if you're applying some abrasive to the leather it doesn't matter much.