Please, no Dremel!
Ask a dentist about the most stable glue; perfect color matching should also be possible for a dentist although this color will come up more rarely...
If this is a wootz blade, it could use some polishing & etching from someone competent - others may ruin it. I'd leave the nick alone though. BTW, it's possible that a wootz blade has a welded-on tang.
Does the scabbard fit well with this blade?
Regards,
Kai