A nice text effect is the ‘cut-out’ look or what is best known as engraved text. It is actually as easy to implement as to alternatively add an embossed effect to any length of text. Here is a good approach if you want it to be done quickly.
Let us create a box at 300 by 100 pixels. Now assume we are creating a logo and wish to engrave the company name text. I chose a light cyan shade as this softer color will help make the engraved look stand out more upon completing the task. The hex code used was #88A4F7. Then fill the box with that color.
I used ‘brush stroke 26’ as the font to gain a smooth wavy feel with a size of 60 pixels. Actually you can use any font, just make it around 40 to 60 in size and a much darker color than the background.
Now, right click the text layer, and select blending options. Check the inner shadow box.
If you wish to alter any of the other settings, best you wait until the tutorial is over so you can correct any adjustments as necessary. Duplicate the text and change the duplicate font color to white. Then, move the white text layer above the first layer so it snaps into place. Then move that text down with your arrow key about 1-2 pixels.
Now drag the white text down a layer in the list so it is beneath the black text.
The next part is to simply alter the opacity levels of the text. Bring the top dark layer down to about 65% and the white layer to about 80%. My aim was to make the inner text look pale though you can leave the opacity setting if you prefer the darker engraving above. Play around with the figures to try and achieve the engraved feel. It may be that you need to adjust the position of the dark layer slightly. Soon as I adjusted the opacity levels, the result should now start to look like engraved brushed text.
Now, right click the bottom white layer, go to blending options, and change the blend mode to overlay. Now to sink the wavy texture further, check the inner shadow box.
Et Voila! Now you have completed the tutorial by weaving a nice engraved effect that you can use for any of the fonts complete with curves and shadows giving it a subsequent apparent depth. You simply enter the text, and then choose a font size upon further edits.