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If your nephew lives in NY, the law of that state will apply because it is the only state that has jurisdiction over the child. Therefore, you would have to pursue obtaining custody of him through the state of NY.
However, the NY court can grant custody to you even though you're out of state.....and you can coordinate with your local CPS office and the similar authorities in NY state for as long as they want to keep a case open.
The court's main issue would be the distance between you and the parents of the child.......which would make it difficult -- if not impossible -- to maintain reasonable visitation between the child and parents. But that may not be a huge concern given that adoption and terminating parental rights is being discussed.