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You could mix the paint and clear together and apply thin layers to build it up to its level. That's what I tend to do.

Another way is to make it slightly proud then using a fine wet and dry sand it even and then polish it up. There are a few helpful threads on detailing world that show how best to tackle stone chips

Some chips you have to enlarge slightly to give the paint something to key on to.

Yes, a toothpick or cocktail stick are pretty good for applying paint to very small paint chips. I find brush in the cap of the VW touch up pencils far too big.

I have bought a set of 10 child paintbrushes at about £1 the set to deal with a range of small chip sizes. Seems to work. Never thought of a cocktail stick though for very small chips - clever idea.