You just use progressively finer sandpaper until you get the finish you want. Depending on the finish you're starting with, I'd probably start with either 220 or 440 grit and then use 600 etc (there are several steps between 600 and 2000) until you reach around 2000 grit. That still won't be a true mirror polish, but will be a fine hand rubbed finish. Remember you must get all the scratches from the previous grit removed before moving up a grit. For hand sanding, be prepared for this to take a while, especially on a hardened high quality steel. Also be mindful you have to be careful to sand the right way so as to not smooth out the major grind lines the knife designer used to give the blade it's shape. Round those off too much and you have a shiny blade with no distinct personality.
For a true mirror finish, you need to get into buffing wheels and various grades of polishing compound. This approach is beyond the scope of this post but can be quite dangerous so be careful. You can do an OK job with a dremel and the right accessories, but it is hard to get the consistant finish you're probably looking for that way.
Also remember that if you're talking about a blade on a folder, you'll need to be able to dis-assemble the knife to get the finish even over the whole blade.
jmx