Yes, lean AFR makes the engine knock. There is less fuel in the combustion chambers hence more heat and knock, put more fuel in which reacts as a coolant and then you have less heat and knock. Hence why factory cars are generally run rich from factory to act as a safety measure.
The old saying is, lean is mean!!! Its great for performance but its living life on the edge. But, 12-1 ratio should be what your aiming for, maybe high 11's if you continue to have troubles.