You can remove
metal using a grinding wheel, but be careful not to let the steel get too hot.
Keep a bowl of water handy to dip the tool into frequently. Usually, by the time you think you might be getting too hot, you just did. Err on the side of caution and dip the tool every few seconds. Be patient, and soon you'll be past the chip.
You can grind the edge straight into the wheel to get past the chip, and then hollow grind the bevel until you start creating a new edge. It is very easy to burn the edge, however, when you do it that way.
Coarse sandpaper is a safer, very effective means of restoring the bevel. You might just sweat a little more.