I've not been able to keep a headlight on the bike long enough to have it oxidize. First one got taken out by a Bambi and the second one by a BMW F800GS.
But I have a lot of experience with oxidized headlights on cars, specifically SAAB 9-3 sport sedans. If the lens is sandblasted badly you can wet sand the surface down first, then hit it with rubbing compound, followed by polishing compound. A mechanical buffer will speed the material removal, but also increases the chance of screwing it up by over heating.
Now, here's the rub (get it?) , after you get the surface all polished and clear, because you've removed the outer UV coating in the polishing process (if it wasn't sandblasted off already) the plastic will re-fog very quickly from the sun. You can try using a plastic protect-ant, which is like sunscreen for the plastic, but you have to keep up with it because that stuff doesn't last all that long.
There are also some some spray on coatings that can be professionally applied, but i am unaware of any you can by for DIY use, unless it comes in one of the "headlight restoration kits".
But when it gets really bad, you can always just spring ~ $250 for a new bucket.