[proofplan]
Assume that the halting set has a total computable characteristic function. Use it to construct a partial computable function $g$ which intentionally disagrees with the diagonal computation $\varphi_e(e)$: it halts exactly when the characteristic function says that $e$ is not in the halting set. Since the numbering is acceptable, $g$ has some index $d$. Evaluating the construction at its own index $d$ forces $d \in K$ iff $d \notin K$, a contradiction.
[/proofplan]
[step:Assume a computable decision function for the halting set]
Suppose, toward a contradiction, that $K$ is computable. Then there exists a total computable function
\begin{align*}
h: \mathbb{N} &\to \{0,1\}
\end{align*}
such that, for every $e \in \mathbb{N}$,
\begin{align*}
h(e) = 1 \iff e \in K.
\end{align*}
Equivalently, for every $e \in \mathbb{N}$,
\begin{align*}
h(e) = 1 \iff \varphi_e(e) \text{ is defined}.
\end{align*}
[/step]
[step:Construct a partial computable diagonal function that reverses the decision]
Define a partial function
\begin{align*}
g: \mathbb{N} &\rightharpoonup \mathbb{N}
\end{align*}
as follows. On input $e \in \mathbb{N}$, first compute $h(e)$. If $h(e) = 0$, halt and output $1$. If $h(e) = 1$, do not halt. Thus
\begin{align*}
g(e) \text{ is defined} \iff h(e) = 0.
\end{align*}
Since $h$ is total computable, this procedure defines a partial computable function $g: \mathbb{N} \rightharpoonup \mathbb{N}$.
[guided]
We use the supposed decision function $h$ to build a new partial computable function which behaves opposite to the diagonal halting prediction. Define
\begin{align*}
g: \mathbb{N} &\rightharpoonup \mathbb{N}
\end{align*}
by the following algorithm on input $e \in \mathbb{N}$: compute the value $h(e)$, which is possible because $h$ is total computable. If the computation gives $h(e) = 0$, then halt and output $1$. If the computation gives $h(e) = 1$, then enter a nonterminating computation.
This gives the exact equivalence
\begin{align*}
g(e) \text{ is defined} \iff h(e) = 0.
\end{align*}
The construction is partial computable because it consists of a total computable preliminary computation, followed by a computable branch: one branch halts with the fixed value $1$, and the other branch intentionally runs forever. The point of the definition is that $g$ halts precisely on those inputs which $h$ declares not to be in the diagonal halting set.
[/guided]
[/step]
[step:Choose an index for the diagonal function]
Because $(\varphi_e)_{e \in \mathbb{N}}$ is an acceptable numbering of the partial computable functions, the partial computable function $g: \mathbb{N} \rightharpoonup \mathbb{N}$ has an index. Hence there exists $d \in \mathbb{N}$ such that
\begin{align*}
\varphi_d = g.
\end{align*}
[/step]
[step:Evaluate the constructed function at its own index]
By the definition of $K$ and the equality $\varphi_d = g$,
\begin{align*}
d \in K
&\iff \varphi_d(d) \text{ is defined} \\
&\iff g(d) \text{ is defined}.
\end{align*}
By the construction of $g$,
\begin{align*}
g(d) \text{ is defined} \iff h(d) = 0.
\end{align*}
Since $h$ is the characteristic function of $K$,
\begin{align*}
h(d) = 0 \iff d \notin K.
\end{align*}
Combining these equivalences gives
\begin{align*}
d \in K \iff d \notin K.
\end{align*}
This is impossible. Therefore the assumed total computable characteristic function $h$ does not exist, and $K$ is not computable.
[/step]