Never fished with Stubby Steve's but it certainly sounds like it is far better than Berkeley Power Bait.
My two best methods for stocked trout in lakes when fishing from the shore has been to use a small swivel. Above it put a small 1/8 to 1/4 oz egg sinker. Below it tie on a leader of about 3 feet. I use a #6 bait holder hook and use a couple different bait methods.
One of my favorites is a night crawler that I use a
worm blower to blow some air into it. (be careful you don't explode the worm though) I will sometimes put 1 or 2 kernels of corn or Berkeley Power Bait, but it sounds like Stubby Steve's would be a better option on the hook above the worm. The air blown into the worm makes it float off the bottom and the trout love it.
My other favorite bait is to simply use Berkely Power Bait or Stubby Steve's alone, but I seem to do better when a night crawler is along for the ride.
I think #4 test should be fine unless you have very clear water or are later into the fishing season and the trout are getting hook shy. The #2 test will give you further casting distance though. Fluorocarbon will be even better but is more $... I use a 12' noodle rod and a 10' noodle rod. I can cast them a country mile if needed and the trout are a ton of fun to fight on those longer rods. I am not sure you have to go purchase a special rod to get all that distance though.
