Three-way molding joint

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slownsteady

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I'm sprucing up the laundry room a little bit. Around the ceiling there is a shoe molding, and I want to add a quarter-round in the vertical corners of the room. So what do I do where the the mitered corners of the shoe intersect with the top of the qtr-round?

And, while I'm askin', what do you guys recommend for filler where the molding isn't snug against the wall (as can happen when the wall is a little wavy)? Wood putty, caulk, or drywall mud? Or something else?
 
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