Prepare the piece of molding you want to cut by placing it top down on a miter table saw. Prior to any cope cutting, make sure you measured the molding length so that you are cutting on the right place.
Set the blade of the miter table saw to an exact 45-degree angle.
Cut the molding at the 45-degree angle with the miter saw, very slowly, holding the molding in your hand firmly. Be very careful and keep your fingers as far away from the blade as possible.
Mark the main, leading edge of the cope cut that will define and create the joint using a pencil. Darken the area where you will remove the excess wood molding for the molding to fit the inner corner of the ceiling.
Cut the excess molding material from the back of the cut, behind the marked line. Use a copping saw and be sure not the cross the line or break the molding.
Treat the surface of the cut with sandpaper, using a coarse one first and then a fine one. Make the surface of the cope cut as smooth and even as possible.
Connect the end of molding cut at the 45-degree angle with a straight cut end of molding. Because the excess material from inside of the 45-degree angle cut was removed, the two should fit together to form a perfect, seamless joint. If not, simply sand away the remaining material getting in the way. Note that the final joint needs to be perfectly straight and tight.