How long are your crankarms? I wonder if you need shorter ones. Flexing my knees too much at the top of the pedal stroke gives me problems. And like you, mashing seemed better than spinning when I had crankarms that were too long, for a couple of reasons - the simple fact of fewer pedal strokes per a given distance, and also keeping a lot of weight on the pedals unweighted my @$$ and lifted me slightly higher. With 165mm cranks I'm much happier to spin.
Hope you get it sorted soon, knee trouble is miserable.
Speed comes from what you put behind you. - Judi Ketteler