If you can post a closeup picture of the edge you might get more specific advice. I guess it's too late to mention that it's not a good idea to use a grinder.

A file can do anything that a grinder can do on a knife edge, and you have much more control. With a grinder there is also the danger of changing the edge geometry, which will probably reduce chopping performance whether the edge is sharp or not.
Before using sandpaper you should try to remove any rolls, chips or dings along the edge. How to do that depends on the severity of the blemishes. The chakma that probably came with your khukuri is good for straightening out rolls in the edge. You might need to use a file if there are small chips. Again, a photo will help.
Once you are past that and on to the sandpaper sharpening, I suggest that you start with something pretty fine, like 600 grit or 400 grit, and see if that takes off enough material. If not, go to 360, 280 or 150 grit. Once you find a grit that actually sharpens the edge, work your way up the grits until you are satisfied with the result. A good hardware store will probably carry sandpaper up to 2,000 grit, though that might be overkill.
Lastly, if you plan to use your WWII as a chopper, it is not necessary to make the edge "shaving sharp" or very sharp at all. I consider it plenty sharp if the edge will cut smoothly through a sheet of ordinary paper without tearing it. Of course others might disagree. That's what makes horseracing.