I guess if you are really the patient type you could do this by hand, but I wouldn't. The chances of cutting an oval chamber or putting a nasty scratch in it are just too great. Not to mention you won't really have a good way to polish it out after you've finished cutting. As for headspace, check it first to see that it's not too much already. Then if it's now OK, just cut until the rim cut's blue JUST gets scratched and stop. You're done. If it's too deep already it gets a bit more interesting, and you'll need a gauge that measures to the shoulder and not the rim.