We'll begin this tutorial, by creating a new canvas with a canvas size of 400 x 400. Fill the background with a light blue and type your text. I used "Tyco" at 65 pixels ...color white. I then turned the opacity down for visual purposes.
Next step you will need to create a new layer. Now go to the tool bar and select the "Brush Tool" I chose a "Hard Round" brush at approximately 17 pixels. Trace your text now keeping in mind to make it fluffy.
Now go to the main menu and select, "Filter", "Blur" then "Gaussian Blur". Use the below settings.
You should now have the following.
Another step, but not necessarily needed...go to the main menu and select, "Filter", "Other" then "Maximum". Use the below settings.
The Results!!!
As you can see, I have added some clouds to go with the text. Hope you enjoyed.













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