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Ollie,
On my TDI, timing is pulled back with higher intake air temps for NOx reduction purposes. If I unplug the IAT sensor, the ECU assumes -15 F IAT (vs ~90 F) and I can see the timing being adjusted by 2 degrees as I connect and disconnect the IAT sensor. I too blocked airflow to the IC, but instructed the ECU IAT was cold, and my mileage did not go down.
Your KIA is probably a much newer car than my 99 and there might be other emissions systems affecting how it reacts to intake air temps. A couple degrees less advance should really not affect mileage all that much alone.
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