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In this paper, we propose K-LLD: a patch-based, locally adaptive denoising method based on clustering the given noisy image into regions of similar geometric structure. In order to effectively perform such clustering, we employ as features the local weight functions derived from our earlier work on steering kernel regression . These weights are exceedingly informative and robust in conveying reliable local structural information about the image even in the presence of significant amounts of noise. Next, we model each region (or cluster)-which may not be spatially contiguous-by ldquolearningrdquo a best basis describing the patches within that cluster using principal components analysis. This learned basis (or ldquodictionaryrdquo) is then employed to optimally estimate the underlying pixel values using a kernel regression framework. An iterated version of the proposed algorithm is also presented which leads to further performance enhancements. We also introduce a novel mechanism for optimally choosing the local patch size for each cluster using Stein's unbiased risk estimator (SURE). We illustrate the overall algorithm's capabilities with several examples. These indicate that the proposed method appears to be competitive with some of the most recently published state of the art denoising methods.