Looking great Curtis5000! I had that same moment of inspiration but I first need to finish and enjoy my Tele.

It is a bit blotchy after the sand though, anyone have tips on how to work these out? Sand the dark areas or will that create an uneven surface?
Blotchy as in uneven in colouring? If yes, during the staining process use a damp rag to work them out. If you have been using a water based stain you can still try to do it now it's dry, but it is harder. I am not sure if you use a meth spirit based stain.
With sanding I would never sand in one place unless it is a very light touch-up sand with 320 + grit.

Good luck! she's looking great!