Really the best method it to cut (scrape) back the exess with a plasterers small tool and refill them. They will be easier to cut back as the new cement is setting. Use a wet sponge to soften the cornice adhesive and clean away any exess.
It is not the easiest of processes once it is mucked up, even a lot of plasterers dont seem to get it right.
There is no magic fix and you are quite right sanding in a corner like that is not easy.
Cornice is cheap you could take it down and re cut new cornice with mitres that fit.
See here
http://www.how2plaster.com/bcc.html
Replacing it might be the way to go if it is too hard for you to fix. If you cut it right and measure and place it right all you really need to do is wipe out the corner with a wet sponge to get a reasonable job.
Cheers
Rod