Hi!
I've done almost the same as you with items that came out almost perfect with the top XCR coat.
What can be very difficult to see is how "flat" the surface actually is, unless you start out using dry paper.-
I had som striping of the surface that were not visible when wet sanding with 1000 grit, until the part dried
So you can do it, but you must use something like a cork sanding block first, so that any striping becomes visible.
If the surface is truly flat, then you're good with the wet sanding at 1200, and yes you can use the white polish paste
I go directly to the fine polish and use a machine polisher when I can .. saves a lot of time, but be carefull with it ..
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