Here's how to make Cutout Text. As you can see on the graphic on the right above, it looks better on some kind of pattern, but I did it in white as well so you could see what it looks like.
- Before you type your text, make 2 new layers: Shadow and Cutout. Type your text on the Cutout layer, making sure Floating is not Checked. Stay in Cutout Layer.
- Apply Cutout to Text (Image, Effects, Cutout) with the following properties:
- Shadow Color = Black
- Opacity = 100
- Blur = 5
- Both Offsets = 3
- Keep text selected. Click on the Shadow Layer. Apply Drop Shadow (Images, Effects, Drop Shadow) with the following properties:
- Shadow Color = White
- Opacity = 100
- Blur = 0-1
- Both Offsets = 1
- Merge Layers (Layers, Merge, Merge All), and you're done.
