Recall

Knowledge can be represented as strings and trees of nodes connected together. In order to retrieve information and obtain a logical behavior these strings and these trees are scanned in every direction. A thought is a flow of linked recollections. A recall starts from sensors. Thought may follow its process a long time after sensors triggered an initial recall. But at least from time to time sensors trigger recalls. Thought from previous recalls may interfere with new triggered recalls. A reader receives stimuli from vision sensors and they interfere with previously induced thoughts. However an explanation of a recall process shall be explained from sensors in order to remain as simple as possible.
The following process may probably work:
A bunch of stimuli is memorized in a time line. This bunch activates a node.  This node becomes a template. This template will be dropped or reinforced in the future.  All new similar records will be attached to this reinforced node. The recall process propagates both forward and backward.
- Forward from sensors to higher levels.
- Backward from higher level to sensors and actuators.
The forward propagation is a kind of hypothesis and needs confirmations by a sufficient amount of active entries. The back propagation looks like a conclusion. True or not, anyway it shall be taken into account.
If this conclusion fails, and the upper level fails too, then a new template shall appear.
The final conclusion may contain sequences of elementary actions.
A dynamic graph and a simulation  would help: more in a few days.

Thought

Forecasting future by replaying the past.

A thought is a sequential activation of linked pieces of information. Information may have been stored as crisp unique experiences. Multiple crisp past experiences have often been mixed up together into templates representing a fuzzy mean value.
From present activated stimuli or from already activated ideas, templates are activated. This activation tries and moves forward through the upper levels of memorized knowledge.
Several kind of levels shall be specified:
- Time scale levels, from tenth of seconds to hours.
- Association levels, from local sensor groups to large associations.
- Abstraction level, from crisp automatic response to philosophy.
In order to reach the upper levels, this activation needs support from the lower levels. Several rules shall drive this activation process.
- A node is activated if a sufficient amount of its inputs are activated.
- An activated node may include non-activated inputs.
- Non-activated inputs in an activated node represent predictions or actions to be done.

A thought is triggered either by a stimuli or by another thought.
A thought is driven by past experience.

Knowledge

Knowledge is the sum of all added information from the birth of an intelligent being. What exactly is information for an intelligent being? Footprints of past days. In order to be depicted as "information", these footprints must be "computable" by the entity.
Knowledge is different from skills. Knowledge is used to enhance skills. Not all skills come from knowledge. Not the whole knowledge is used to enhance skills.
Knowledge shall be stored. This storage must save available resources. How exactly is knowledge stored within an intelligent being memory? Clues have been given by neurosciences but the whole system complexity still remains globally out of reach. However, knowledge management can be studied from its external appearance.
First, knowledge shall be stored.
Moreover, knowledge shall be re-usable. A past experience has to be compared to a new similar situation.
No new real event is entirely similar to a previous one. The storage of knowledge shall ease approximative comparison and classification. 
Of course, neural networks rather well perform such a task.
The ability of generalization is a powerful feature of evolved intelligent being brains. Generalization operates within time and space.
Storage
Stored knowledge starts always from stimuli.
Are elementary stimuli close together in space and in time?
If they are close enough in space and in time, this proximity is recorded as an elementary knowledge.

On most sensor events, only time proximity is significant. The sequence doesn't matter. However chronology  is recorded on a time line and can be used later if relevant. The elementary sense of cause and consequence comes later from the sense of sequence.
Recall
New stimuli activate stored elementary knowledge. Stimuli must be numerous enough and located in a zone of sensors previously involved in a stored elementary knowledge. The recall can be triggered even if new stimuli are slightly different from stored stimuli.

Competitive recall
If several elementary pieces of knowledge in the same zone are activated by new stimuli, then they will compete. At a given time in a given zone, most activated piece of knowledge will be considered as most suited for the present situation.