Remove flash reflection in photo

For the flash reflection, try gently moving the Highlight slider in Highlights and Shadows section.

Ernie

You are asking to do a lot of digital 'magic'. It would be a lot simpler to simple reshoot the picture.

I'd just try the Repair or the Clone functions of the Retouch Brush after adjusting the exposure using the Exposure Brick. You can show blown areas by holding down {Control} while moving a slider. (Or just turn them on via "View→Highlight Hot and Cold Areas".)

You should read up on using the Recovery Slider -- this is the better way to recover what you can of blown highlights.

You can try the Burn Brush with edge detection on -- but in my experience it will take time to make the edge imperceptible.

You cannot cut out the subject and paste it onto another background. For that you'll need something called an alpha channel. All graphics programs (e.g.: Photoshop) do this. So does the iWork app Pages.

You can change the exposure in some parts of an image and not in others. This is done by brushing on and/or off either Levels or Curves.

The Highlights and Shadows Brick is good for showing detail in areas which are too dark or too light for us to see much detail. Note that it won't recover anything blown.