Dont use a dremel....you will most likely screw it up.
Use a file. Put the part between two pieces of steel with just what you want cut off sticking out.
Theres no way that hammer is hardened as much as a file. Files are full-hardened and BRITTLE as a result, which is why you can snap them with your hands. Most production steel labelled as "hardened" has also been tempered to some degree, and files will bite just fine. Unless that hammer is full-hardened carbon steel (hard stainless is actually quite soft) at max hardness, a nicholson file will eat it like butter.
If for some shocking reason a file still won't do it, 10 minutes with some 3X sandpaper and a steady hand will do the job just as well.