Starting in the "Text" layer, place your text in the color of your choice. Save your selection to the Alpha Channel.
Hide the "Text" Layer, but keep the selection active.
Next, in the "Cutout" layer, apply the cutout filter (Effects|3d Effects|Cutout) using these settings:
shadow color: black
fill interior with color: Unchecked
offset 3,3
opacity 100%
blur: 5-6
Next, in the "Cutout" layer, apply the drop shadow filter (Effects|3d Effects|Drop Shadow) using these settings:
shadow color: white
offset: 1,1
blur 1
opacity 100%
Deselect the selection.
Now, in the 'Layer Palette", adjust the opacity sliders on the "Cutout" and "Shadow" layers until you get the desired effect you want.
Variation: If you want a color filled background, turn the "Text" layer back on.
