If you're using a green laser you really can't reduce the power with your own driver, but you might be able to pot mod it for reduced power. It might actually just be easier to buy a lower powered module, like a 30mW one. I think Lazerer.com has them for cheap. Even a 5mW green will look pretty bright, so you might try that and work up from there.
You can try the temperature sensor, but you need to calibrate it to a known source, otherwise you'll just be reading relative temperature measurements, not output power.