The fert looks ok, although 2 cups of it in that pot seems like a lot. There's no sign of burning, that's good. A fertilizer that is specific for citrus trees would be better, as they need some micro-nutrients that other fruit trees don't. Be sure to follow the directions on the package, because that fert looks like it's meant to be used on outdoor trees where you would broadcast it over the ground? If it says something like "lasts 3 months" or "re-apply monthly" I would only use about a tablespoon or two, on the top of the soil.
You don't want to disturb the soil around a citrus plant because they put out feeder roots close to the soil surface, so if you were to dig the fert in, it would break the new roots.
I am very puzzled that your plant has two stems. A dwarf lemon tree should have a single trunk with a graft (would look like a slight bulge or joint) a few inches above the soil line. You might want to e-mail the person who supplied this plant and ask about that. It looks to me as if you have two cuttings rooted in that one pot. Not a good situation. When you re-potted it, did you bury it deeper than it originally was?
For now, yes I'd just try watering more deeply and more often. Use a bigger saucer and let the pot soak up some water before you empty the saucer of drained water. Clay will also absorb water then slowly evaporate it. But don't let it sit in the water for more than an hour or two. Do the spray/shower thing, because the leaves will love it and it also prevents insects like aphids and spider mites getting established. The major leaves look good, a nice color and shiny.
