OK, I came up with a better solution for cooling the CPU.
First of all, let's go over some stats:
a) With the stock fan placement, my CPU was averaging about 50~60C on idle. I'll let it idle for 30 mins and measuring the average across this time.
b) With the modified fan placement (as per OP's post), my CPU was averaging about 48~55C on idle, again a 30 minute measurement. However, the fan will soon start to spin up to 150+ RPM, regardless if the CPU is running cool or not. This is because there is an Intel BGA chip that sits under the fan and this chip runs hot and needs to be cooled. The stock fan placement actually cools the BGA chip and pushes the hot air OUT of the case. Every M92p Tiny photo that I looked at, every video I found on Youtube, shows that the stock fan placement IS the correct placement. If you take a look at the M93's fan setup, it's the same. It pushes hot air OUT of the case, it does NOT direct air towards the CPU. Anyway, I digress.
c) Now, here's the interesting part. I found that the heatsink that sits on top of the CPU has a stupid and unnecessary plastic cover, which is removeable. If you remove that, you'll find that the heatsink itself is actually a very flat surface. By removing this cover, you actually allow more airflow towards it, as well as allow better heat dissipation outwards. This improves temp by about 1C~3C.
It gets better. I've found a spare heatsink + CPU that I had lying around. This is what I have in case anyone's interested:
https://www.amazon.com/ARCTIC-Alpine-11-GT-Rev/dp/B002D2H9W0
The surface area at the bottom of the heat sink is quite large and flat, which is perfect for me because the heatsink in my Lenovo M92p Tiny is also very flat. I didn't think it'd be a good idea to use one heatsink on top of another, but in this case it actually works. With just the additional heatsink sitting on top (not even using thermal paste in between the 2 heatsinks and not using the fan yet), I'm now getting a consistent 34~35C, which is bloody amazing, considering that this is passive cooling.
Now, how do we use the fan? Well, our M92p unfortunately does not have a 4 pin PWM connector. If you're looking to use a fan that uses either a 3 pin or 4 pin PWM connector, then what you'll need is something like this:
https://www.amazon.com/4-Pin-Sleeved-Power-Adapter-Cable/dp/B01LW50R03
You can order the above off Aliexpress for a cheaper price. I got mine for around $2.5 NZD, which is **bleep** cheap.
Finally, I'll just need to use some zip ties to tie down the new heatsink on top of my existing heat sink. I've done some research and most zip ties are nylon based, which can deal with up to 220C. This should be fine, because your PC shouldn't go up to 200C anyway.
Once I apply thermal paste in between the heat sink and use the fan, the temp should be even lower. This is amazing, considering that my M92P is averaging about 2.8~5W on idle/low usage and using 35C (and possibly even less once I start using the fan).
Oh and I also bought some tiny heatsinks made for Raspberry Pi and one of them actually fits really nicely on top of the Intel BGA IC chip. Even with that heatsink on, it doesn't block the fan, so it's actually a perfect fit. With this heatsink, it drops the temp by about 5.0C, which isn't too bad. Just make sure that when you mount the heatsink, you have the fins facing parallel to the fan. This is because the heat will be emitted out in the same position that the fan will be blowing towards.
In HWMonitor, I used to get 50.0C or higher for TMPIN0 (motherboard). Now, I'm getting about 45.0C ~ 46.0C, in the same testing condition. CPU temp is averaging about 38~43C atm. Would be great if I could undervolt, but I've checked the BIOS (using UEFI Tool) and there isn't an "Overclock Lock" setting that I could find in the BIOS file itself.
The final thing I'll add is that the fan is rubbish. The fan spins and blows air in one direction only. Not only that, the fan also produces a tiny bit of air from under the fan blade. If you place the fan in the "modified" position (as per OP's suggestion), then it means that the blade will be facing up and so the air coming from the blade will be going up, instead of down. The Intel BGA IC chip is below the fan, which means it won't get any air from the fan at all and therefore would not cool properly. SO, get yourself a better fan that has a better design. I bought a few from Aliexpress and I have no idea whether they're decent or how well they'll fit, but I'll update this thread (if I remember) when I receive them. Some fans have a square cover around them and the ones I went for have as little cover and unnecessary plastic bits, so that the airflow is going to be circulated much better around the entire area where the fan is located.