Bert -

the varnish will continue to show the low spots, as you are filling the low as well as the high spots with varnish. Of course anything shiny now seems to stand out.

Try scraping the epoxy with a piece of glass with a straight edge. Cut a new edge, and hold glass perpendicular to the surface. Tip it slightly toward you and with minimal pressure draw the glass toward you. Epoxy should come off in very fine ribbons - almost like wood does when you use a plane. Fastest way I've found to get to a smooth finish. Works really great if you get some small "off-gassing" air bubbles. Most panels are fairly straight on S&G - so in fairly short order you should have the orange peel gone. Don't scrape the wood or the glass, and you can always roll on another coat of epoxy once you get it down smooth.

I had a similar problem on a set of wooden car carriers I built to fit my car roof. In about 20 minutes I was back to a really smooth surface, over which I added one more thin coat of epoxy, and then 3 coats spar varnish.

Ummm - don't cut yourself on the glass.

No glass? Visit a frame shop or glass company - and become intimate friends with their dumpster...after talking to owner of course.