1. Draw a rounded rectangle. Use a shape layer and a radius of 20px. Hold shift while making the rectangle to keep the sides equal length.
2. Apply the following layer styles:
3. Duplicate your rounded rectangle layer, select the new layer and hit 'ctrl+t' to free transform. Now hold 'alt+shift' and drag a corner handle in to make a smaller rectangle with the same proportions.
Change the smaller rectangle's stroke size to 3px and stroke color to white (double click the layer in the Layer window to change layer styles).
4. Draw three shapes as shown. First make a rounded rectangle, duplicate and shrink it to make a smaller round rectangle, then create a circle (hold 'shift' while using the ellipse tool to create a perfect circle).
5. Arrange your shapes to form a magnifying glass.
Select your 3 shape layers that make up the magnifying glass ('ctrl+click' each layer in the Layers window).
Hit 'ctrl+t' to free transform all 3 shapes. Enter the following setting to rotate your shapes -45 degrees...
to get this:
6. Duplicate and shrink your circle to create the lens. Give it the same color as the stroke around the button: #00ccff. Add some text and you're done (my font is Futura Lt BT at 30pt).
