Hold down Ctrl key and click on the poly subobject icon to switch to the poly subobject while also selecting polys defined by the highlighted edges.
Bevel the selected polygons using Type: By Polygon; Height: -1.0 and Outline Amount: -4.0.
Finally add a MeshSmooth modifier with 1 or 2 Iterations. Be careful! Anything more than 1 iteration will result in a huge increase in polygons and rendering times.
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