My pan is uncleared Dakar Yellow Base coat inside. I'll do the same when I paint.
Yes, I use sanding blocks. Mostly small chunks of wood with the paper wrapped around them. So far, on this job, I have used a piece of pine 3/4"x1/2"x2" long. On other jobs I've used bigger blocks and pieces of hose ranging from 5/16"o.d. to 2 1/2" o.d.. Depends on the shape of what I'm sanding. Sometimes, though, you just have to use a small piece of paper and your fingertips.
I don't use the 3M blocks. They're too big, and use too much paper. I can usually do all the parts of a bike with 1/2 sheet of 220 and 320 and 2 sheets of 600. If I want to sand the clear for buffing a couple sheets of 2000 and 2500 will do it. A couple scraps of 100 or 180 will knock down the high spots when I do Bondo. I try to wet sand as much as possible with some soap and water and a sort of light touch, makes the paper go almost forever.