Is my stepper too small?
You don't say it, but your problem may be that you're trying to start the stepper at full speed. If so, there is a maximum speed (which varies somewhat with load) beyond which a stepper will not accelerate, and this speed is normally well below what you can reach with a gradual increase in speed. Google on "stepper motor torque curve".

The problem is that, with a 4-phase stepper such as you are using, if the shaft angle lags more than 2 step angles behind the commanded angle, the torque reverses and the motor sits and vibrates and makes horrible noises. This is not, technically speaking, a stall condition, where the shaft does not move at all.

The torque-speed curve for your motor can be found at http://www.kelinginc.net/KL34H2120-42-8AT.pdf and indicates that the motor can be run at 5000 steps/second, which suggests that your problem is your attempt at fast start. 

If, on the other hand, you've already tried a slowly increasing step rate while running, then you probably do need a heftier motor. However, my calculations for a .144 hp motor at 10 rps gives about 2 Nm torque, and the linked torque curve for your stepper is about the same, so I wouldn't expect a problem. Unless, of course, you've modified your mechanical setup somehow.