diff --git a/kernel/break.c b/kernel/break.c
index 7e28788..be097c5 100644
--- a/kernel/break.c
+++ b/kernel/break.c
@@ -42,37 +42,52 @@ static BYTE *RcsId =
 /* Check for ^Break/^C.
  * Three sources are available:
  *       1) flag at 40:71 bit 7
- *       2) CON stream (if STDIN is redirected somewhere else)
- *       3) input stream (most likely STDIN)
- * Actions:
- *       1) echo ^C
- *       2) clear the STDIN stream
- *       3) decrease the InDOS flag as the kernel drops back to user space
- *       4) invoke INT-23 and never come back
+ *       2) syscon stream (usually CON:)
+ *       3) i/o stream (if unequal to syscon, e.g. AUX)
  */
-unsigned char check_handle_break(struct dhdr FAR **pdev, int sft_out)
+
+unsigned char ctrl_break_pressed(void)
+{
+  return CB_FLG & CB_MSK;
+}
+
+unsigned char check_handle_break(struct dhdr FAR **pdev)
 {
   unsigned char c = CTL_C;
-  if (CB_FLG & CB_MSK)
-    CB_FLG &= ~CB_MSK;            /* reset the ^Break flag */
-  else
+  if (!ctrl_break_pressed())
     c = (unsigned char)ndread(&syscon);
-  if (c == CTL_C)
-  {
-    sft_out = -1;
-    pdev = &syscon;
-  }
-  else if (*pdev != syscon)
+  if (c != CTL_C && *pdev != syscon)
     c = (unsigned char)ndread(pdev);
   if (c == CTL_C)
-  {
-    con_flush(pdev);
-    echo_ctl_c(pdev, sft_out);
-    if (!ErrorMode)      /* within int21_handler, InDOS is not incremented */
-      if (InDOS)
-        --InDOS;         /* fail-safe */
-
-    spawn_int23();       /* invoke user INT-23 and never come back */
-  }
+    handle_break(pdev, -1);
   return c;
 }
+
+/*
+ * Handles a ^Break state
+ *
+ * Actions:
+ *       1) clear the ^Break flag
+ *       2) clear the STDIN stream
+ *       3) echo ^C to sft_out or pdev if sft_out==-1
+ *       4) decrease the InDOS flag as the kernel drops back to user space
+ *       5) invoke INT-23 and never come back
+ */
+
+void handle_break(struct dhdr FAR **pdev, int sft_out)
+{
+  char *buf = "^C\r\n";
+
+  CB_FLG &= ~CB_MSK;            /* reset the ^Break flag */
+  con_flush(pdev);
+  if (sft_out == -1)
+    cooked_write(pdev, 4, buf);
+  else
+    DosRWSft(sft_out, 4, buf, XFR_FORCE_WRITE);
+  if (!ErrorMode)               /* within int21_handler, InDOS is not incremented */
+    if (InDOS)
+      --InDOS;                  /* fail-safe */
+
+  spawn_int23();                /* invoke user INT-23 and never come back */
+}
+
diff --git a/kernel/chario.c b/kernel/chario.c
index 755310e..89de4d3 100644
--- a/kernel/chario.c
+++ b/kernel/chario.c
@@ -89,7 +89,7 @@ STATIC int CharIO(struct dhdr FAR **pdev, unsigned char ch, unsigned command)
 
 /* STATE FUNCTIONS */
 
-void CharCmd(struct dhdr FAR **pdev, unsigned command)
+STATIC void CharCmd(struct dhdr FAR **pdev, unsigned command)
 {
   while (CharRequest(pdev, command) == 1);
 }
@@ -126,14 +126,6 @@ int StdinBusy(void)
   return s->sft_posit >= s->sft_size;
 }
 
-STATIC void Do_DosIdle_loop(struct dhdr FAR **pdev)
-{
-  /* the idle int is only safe if we're using the character stack */
-  while (Busy(pdev) && (*pdev == syscon || Busy(&syscon)))
-    if (user_r->AH < 0xd)
-      DosIdle_int();
-}
-
 /* get character from the console - this is how DOS gets
    CTL_C/CTL_S/CTL_P when outputting */
 int ndread(struct dhdr FAR **pdev)
@@ -144,19 +136,6 @@ int ndread(struct dhdr FAR **pdev)
   return CharReqHdr.r_ndbyte;
 }
 
-STATIC void con_hold(struct dhdr FAR **pdev, int sft_out)
-{
-  unsigned char c = check_handle_break(pdev, sft_out);
-  if (c == CTL_S)
-  {
-    CharIO(pdev, 0, C_INPUT);
-    Do_DosIdle_loop(pdev);
-    /* just wait and then skip a character */
-    check_handle_break(pdev, sft_out);
-    CharIO(pdev, 0, C_INPUT);
-  }
-}
-
 /* OUTPUT FUNCTIONS */
 
 #ifdef __WATCOMC__
@@ -213,9 +192,9 @@ STATIC int cooked_write_char(struct dhdr FAR **pdev,
 
     /* if not fast then < 0x80; always check
        otherwise check every 32 characters */
-    if (*fast_counter <= 0x80)
+    if (*fast_counter <= 0x80 && check_handle_break(pdev) == CTL_S)
       /* Test for hold char and ctl_c */
-      con_hold(pdev, -1);
+      raw_get_char(pdev, TRUE);
     *fast_counter += 1;
     *fast_counter &= 0x9f;
 
@@ -302,16 +281,6 @@ STATIC int echo_char(int c, int sft_idx)
   return c;
 }
 
-void echo_ctl_c(struct dhdr FAR **pdev, int sft_idx)
-{
-  char *buf = "^C\r\n";
-
-  if (sft_idx == -1)
-    cooked_write(pdev, 4, buf);
-  else
-    DosRWSft(sft_idx, 4, buf, XFR_FORCE_WRITE);
-}
-
 STATIC void destr_bs(int sft_idx)
 {
   write_char(BS, sft_idx);
@@ -321,15 +290,13 @@ STATIC void destr_bs(int sft_idx)
 
 /* READ FUNCTIONS */
 
-STATIC int raw_get_char(struct dhdr FAR **pdev, int sft_out, BOOL check_break)
+STATIC unsigned char read_char_sft_dev(int sft_in, int sft_out,
+                                       struct dhdr FAR **pdev,
+                                       BOOL check_break);
+
+STATIC int raw_get_char(struct dhdr FAR **pdev, BOOL check_break)
 {
-  Do_DosIdle_loop(pdev);
-  if (check_break)
-  {
-    con_hold(pdev, sft_out);
-    Do_DosIdle_loop(pdev);
-  }
-  return CharIO(pdev, 0, C_INPUT);
+  return read_char_sft_dev(-1, -1, pdev, check_break);
 }
 
 long cooked_read(struct dhdr FAR **pdev, size_t n, char FAR *bp)
@@ -338,7 +305,7 @@ long cooked_read(struct dhdr FAR **pdev, size_t n, char FAR *bp)
   int c;
   while(n--)
   {
-    c = raw_get_char(pdev, -1, TRUE);
+    c = raw_get_char(pdev, TRUE);
     if (c < 0)
       return c;
     if (c == 256)
@@ -351,18 +318,55 @@ long cooked_read(struct dhdr FAR **pdev, size_t n, char FAR *bp)
   return xfer;
 }
 
-unsigned char read_char(int sft_in, int sft_out, BOOL check_break)
+STATIC unsigned char read_char_sft_dev(int sft_in, int sft_out,
+                                       struct dhdr FAR **pdev,
+                                       BOOL check_break)
 {
   unsigned char c;
-  struct dhdr FAR *dev = sft_to_dev(idx_to_sft(sft_in));
 
-  if (dev)
-    return (unsigned char)raw_get_char(&dev, sft_out, check_break);
+  if (pdev)
+  {
+    FOREVER
+    {
+      if (ctrl_break_pressed())
+      {
+        c = CTL_C;
+        break;
+      }
+      if (!Busy(pdev))
+      {
+        c = CharIO(pdev, 0, C_INPUT);
+        break;
+      }
+      if (check_break && *pdev != syscon)
+        check_handle_break(&syscon);
+      /* the idle int is only safe if we're using the character stack */
+      if (user_r->AH < 0xd)
+        DosIdle_int();
+    }
+  }
+  else
+    DosRWSft(sft_in, 1, &c, XFR_READ);
 
-  DosRWSft(sft_in, 1, &c, XFR_READ);
+  /* check for break or stop on sft_in, echo to sft_out */
+  if (check_break && (c == CTL_C || c == CTL_S))
+  {
+    if (c == CTL_S)
+      c = read_char_sft_dev(sft_in, sft_out, pdev, FALSE);
+    if (c == CTL_C)
+      handle_break(pdev, sft_out);
+    /* DOS oddity: if you press ^S somekey ^C then ^C does not break */
+    c = read_char(sft_in, sft_out, FALSE);
+  }
   return c;
 }
 
+unsigned char read_char(int sft_in, int sft_out, BOOL check_break)
+{
+  struct dhdr FAR *dev = sft_to_dev(idx_to_sft(sft_in));
+  return read_char_sft_dev(sft_in, sft_out, &dev, check_break);
+}
+
 STATIC unsigned char read_char_check_break(int sft_in, int sft_out)
 {
   return read_char(sft_in, sft_out, TRUE);
diff --git a/kernel/inthndlr.c b/kernel/inthndlr.c
index 441d947..fa57db2 100644
--- a/kernel/inthndlr.c
+++ b/kernel/inthndlr.c
@@ -408,7 +408,7 @@ dispatch:
 
   /* Check for Ctrl-Break */
   if (break_ena || (lr.AH >= 1 && lr.AH <= 5) || (lr.AH >= 8 && lr.AH <= 0x0b))
-    check_handle_break(&syscon, -1);
+    check_handle_break(&syscon);
 
   /* The dispatch handler                                         */
   switch (lr.AH)
diff --git a/kernel/proto.h b/kernel/proto.h
index d342109..1541a21 100644
--- a/kernel/proto.h
+++ b/kernel/proto.h
@@ -49,14 +49,18 @@ UWORD dskxfer(COUNT dsk, ULONG blkno, VOID FAR * buf, UWORD numblocks,
 void AllocateHMASpace (size_t lowbuffer, size_t highbuffer);
 
 /* break.c */
-unsigned char check_handle_break(struct dhdr FAR **pdev, int sft_out);
+unsigned char ctrl_break_pressed(void);
+unsigned char check_handle_break(struct dhdr FAR **pdev);
+void handle_break(struct dhdr FAR **pdev, int sft_out);
+#ifdef __WATCOMC__
+#pragma aux handle_break aborts;
+#endif
 
 /* chario.c */
 struct dhdr FAR *sft_to_dev(sft FAR *sft);
 long BinaryCharIO(struct dhdr FAR **pdev, size_t n, void FAR * bp,
                   unsigned command);
 int echo_char(int c, int sft_idx);
-void echo_ctl_c(struct dhdr FAR **pdev, int sft_idx);
 int ndread(struct dhdr FAR **pdev);
 int StdinBusy(void);
 void con_flush(struct dhdr FAR **pdev);