- First, create a new image set to 16 million colors OR work with an existing image. Then, in the menu, click Layers >> New Raster Layer. When the next screen pops up, click 'OK'.
- Place your text in a color you want for your outline.

- Click Selections >> Modify >> Contract. Then contract by 1-2 pixels.

- Go to your 'Tool Options' window, as seen below, and change you 'Match Mode' to 'None'.

- Finally, select your foreground color and fill the selection.

Alternately, you can fill the selection with a gradient......

or a pattern.

After your done, you can then add your special effects (drop shadow, etc).
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