As others have said, that level of failure is past saving. If you want to keep it sort of the same colour, get a good large sanding block, lots of water and say some 800 grit wet and dry and block the WHOLE area (ie - WHOLE bonnet) back until there are no edges you can feel - forget what you can see - use your fingers/hands to feel you have a new and uniform finish. DONT focus on the lifting edges - focus on trying to take the whole clearcoat back down in an even fashion. Be very careful on the edges of the bonnet and any shape/grooves/ridges in the panel...you want to use a large sponge and tonnes of water and watch for colour as you are blocking... unless you REALLY know what you are doing, DO NOT rub without a block or flexible pad over the sandpaper...your fingers will leave 'railroad tracks'. Try NOT to get too much colour, as that is only a few microns thick (ie like one or 2 layers of YOUR skin). watch in the water for colour, like when you cut yourself shaving and you get really washed out blood, you must stop in that area once you see any watery color. Ideally if you are blocking the WHOLE panel in an even manner, you'll get it all flat with very little color in the water. Once that is done, you should wash the whole surface with wax and grease remover, wipe with a tack rag (you buy them both from auto paint suppliers) and spray clear over the lot. You can use pressure can automotive clear. Acrylic Paint might be safest as it dries very quickly and you can apply it over twopack which is proabbly what this car is by is age. dont try to get it too wet (shiney) the first couple of coats...try two even light coats first before trying to get it a bit wetter. You'll need to mask everything up, wipe with wax and grease remover again, and tack rag again...don't stick your mits on it again. Warning...this is NOT designed to look good and it will not. It WILL keep the panel the roughly the same color as the car rather than primer grey/black as suggested by outacontrol...his suggestion is the easiest option though. I really dont think polishing this sort of painting will achive anything, but if you think you got enough clear on, to get rid of the 'tram tracks' you'll inevitabley get, wet and dry 1200, lots of water, VERY GENTLY, might bring the whole panel even. You can then try some original TCut, by hand...(not a colored one, the original orange bottle)...it might give you a dull even sheen.
If you are even contemplating painting the panels in the future DO NOT GO ANYWHERE NEAR THEM WITH WAX/CUTTING COMPOUND. This level of deterioration with wax into it, will require you to take the panels back to bare metal to prevent fish eyes and paint problems next time around.