I don't know what you mean by paint with Kilz in it, but you don't need to do that. A primer and 2 coats of finish is the correct process though. The primer should be oil based to take care of the tannin bleed. For exterior cedar I may actually opt for Sikkens Rubbol Dek which is oil based and self priming so you can skip the primer step. I believe that the Sikkens would hold up longer outside than any acrylic product you can find. In my opinion, satin is the highest sheen you would want to use outside but that is a personal preference thing so you may want to step up to semi-gloss depending on how shiny you would like it. There is probably no reason to choose a gloss or high gloss finish though.

"2nd-ing" Paintguy here...

Sikkens Rubbol DEK is a fine choice here! Assuming good prep, it's one of the best Solid Oils out there.

Some dealers though can be few & far between!
Check out Sikkens website for more info. & dealers.

Faron

Here is a link that might be useful: Sikkens website; Rubbol DEK page...

Thanks! I found a Sikkens carrier near me.

Gonna' give it a try. Never heard of it but if you rec it - it's gotta ne worth it!

Thanks again.