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This effect looks really complicated, but actually it's very simple and it's going to result in editable type. We are going to create a hard Drop Shadow. That's the white part. Then we are going to choking an Inner Glow. That's this thin-line color. And then when are going to use a Stroke to offset the Drop Shadow. This is our starting point. Since this is mainly about the Inner Glow. That's where I am going to go to first. I am going to change the blend mode of the Inner Glow to Normal. I am going to click on the color and I am going to sample the color from the letter itself.
I am going to use a darker version of that red. I am going to increase the Size of it, and then I am going to make the Source of the Inner Glow the center of the letter. Here's where the good stuff happens. I am going to get the Choke slider and drag that over to the right. Now, how far you drag this is going to depend upon the particular letter shapes that you are working with. But I want to make that as hard as I can so I am going to go up to 100%, which is going to require me to reduce the Size, and I get more interior shape by doing that.
Now I'm going to come to the Drop Shadow, I am going to turn off Global Lights. I am going to change the color of the shadow to white and I am going to change the blend mode of the shadow as Normal and its Opacity to 100%. Now to make the shadow completely hard rather than blurred, I am going to take the Size down to 0 and then I can move on to the image and just drag the shadow away from the letterform. Now I am going to come to my Stroke and I want to use a stroke that is the same color as the background, so I'm going to click on the Color box.
I'm going to sample the color from the background, so the stroke actually looks like it's invisible. And I want to increase the size of that to 6 pixels and that is our result. And what's so beautiful about it is that I can now select that letter and I could type in any other letter, and we get that same effect. It's completely editable.
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