Removing Highlights

[Mike Velte]

The easiest method would be to use “Shadows and Highlights” effect, but that will reduce all the highlights by an equal amount.
More effective but may involve a bit of work would be to duplicate the clip and place it in a superior track directly above the original, apply a 4 Point garbage matte to the superior clip to isolate just the bright spot. Apply the Shadows and Highlights effect to the superior track to reduce only the highlights.
Now if the spot moves or camera pans, this is where the work begins. You will need to animate the position of the 4 points of the garbage matte to follow the spot.
An animated track matte can also work well.

Prevention is always easier (Zebra feature of the camcorder).