http://www.amazon.com/Diamond-Cylindrical-Jewelry-Gemstones-Lapidary/dp/B00CNXFUBG/ref=sr_1_1?ie=UTF8&qid=1445265770&sr=8-1&keywords=diamond+dremel+bits I have a set along these lines that I picked up from a hardware store. They're made with tons of tiny little industrial diamond pieces and work wonders for clean grinding on model kits and other projects
Back when I used the hobby knife, i'd clean it up with a sanding stick like these http://amzn.com/B00G13A7F8 from the hobby store