Comfortably Numb

I'm having a go at minor paint chip repair. I've cleaned out the chip (no rust). Used auto primer on the spot to be painted. And with a toothpick built up the chip with several layers of paint. The paint I have applied now sits flat to slightly above the surface of the chip. Here are my questions: What should I do next? Wet sand the paint (2000 grit then 2500 grit) then apply clear coat, re-sand and finally polish things out? Or.....apply clear coat then sand things out and polish?

Also, how should I apply the clear coat with a brush or a toothpick? What grit paper should I sand clear coat with 2000, 2500 or both?

Thanks!