1. Log in to the virtual machine as member of the AAD DC Administrators group.
2. Go to PowerShell and execute the following:

      Add-WindowsFeature RSAT-AD-Tools

This will install the AD DS management tools.

3. Once this is completed, go to Server Manager | Tools | Active Directory Administrative Center.
4. In there, we can see the users synced from the local directory. Using this, we can manage the Azure AD objects:

As I explained before, the management tasks we are allowed to do are limited. But basic functions such as password reset and group membership changes can be easily made using familiar AD DS management tools.