Step 1: Given \( \sin \theta + \cos \theta = \sqrt{2} \). Squaring both sides yields \( (\sin \theta + \cos \theta)^2 = (\sqrt{2})^2 \), which simplifies to \( \sin^2 \theta + 2\sin \theta \cos \theta + \cos^2 \theta = 2 \). Applying the Pythagorean identity \( \sin^2 \theta + \cos^2 \theta = 1 \), we substitute: \( 1 + 2\sin \theta \cos \theta = 2 \). This leads to \( 2\sin \theta \cos \theta = 1 \), and consequently, \( \sin \theta \cos \theta = \frac{1}{2} \).