Imbedded Text

Step1:

Create a New Image 800 x 600. Set the background color to white. Click on the Rectangular Marquee Tool  and draw a rectangle. We will use this to write the imbedded text on to. Click on the paint bucket and fill your rectangular selection with a black. Now right click on the rectangle layer, click Blending Options, and add the setting below.

To get this effect use the setting below

Drop Shadow

Gradient Overlay

Stroke

Step2:

At this point all you should have is just the Rectangle with the Blending Options added to it. Now you can add the text. Click on the Type Tool change the font color to #5a5858 and type in something. It should look something how I have it below.

Now duplicate the text layer by pressing (Ctrl + J). Now you should have two layers with the same text and color. As shown in the screenshot below, you need to make sure that your "TEXT LAYER 1" text color is gray #5a5858 and "TEXT LAYER 2" color is White #FFFFFF. This is important.

Step3:

Now click on text layer 2 and click on the Move Tool now using the arrows on your keyboard. Press the Right Arrow 2 times and the Down Arrow once. If you did this right you should have what I have below.