We start with a blank 400x300px canvas, and insert text:
We will open the Layer Styles for this text, by either double-clicking the layer or right-clicking it and choosing Blending Options. We are going to add a Drop Shadow:
It is recommended that you experiment with these settings, as there is not just one way to do anything in PhotoShop, and you may get better results for your particular composition by tweaking. We also add the following styles:
We should have something like this:
Next, we will create a chocolate icing-type border to the text. Select the Pen tool and draw a border:
Use the Convert Point tool to create the curved edges:
Now we want to goto the Paths Window (Window > Paths), and choose the Brush tool. Choose a size that you want the border thickness to be, then right-click the Path we just created (in the Paths Window) and choose Stroke Path. You can try both the Simulate Pressure checked and unchecked, see which you prefer. This is with Simulate Pressure checked:
Now we can delete the Path (right-click and Delete Path). We will have the following:
