We'll begin this tutorial, by using the "Rounded Rectangle Tool" set at 100 pixels, with the color 7f7f7f, draw the shape illustrated below.
Now that you have your shape, right click on the shape layer and select, "Blending Options...". Now click on "Drop Shadow".
Do not click OK yet... still more to do.
Now click on "Inner Glow".
Do not click OK yet... still more to do.
Now click on "Bevel and Emboss".
Do not click OK yet... still more to do.
Now click on "Contour".
Do not click OK yet... still more to do.
Now click on "Color Overlay".
Do not click OK yet... still more to do.
Now click on "Stroke".
You may now click OK.
You should now have the following:
Using the "Pen Tool" draw the below shape with white as your color.
Then turn the fill down to 26% as I have done below:
Select the "Text Tool" and use the basic Verdana typeface at a size of 10 as illustrated below.
Now that you have your text, right click on the text layer and select, "Blending Options...". Now click on "Drop Shadow".
You may now click OK.
You should now have the following:
Now select the "Brush Tool" and set the foreground color to 1277d3, the size to 20 and hardness to about 50%. To make things easier, "Ctrl" click the first shape that you created to put a selection around it. This way, when you brush on your new layer, the color will not go outside of the shape. Now create a new layer and brush around the inner part of the shape as I have done below.
The Results!!!
Change the new layers blending mode to "Color Dodge" and you're done.







More Photoshop: