Using the eliptical selection tool, create on a new layer a perfect circle. Now using a gradient like in my example, fill this selection. You should come up with something similar: ...
Select the Move Tool and move the white shadow layer 2 pixels down and 2 pixels to the right using the arrow keys. Turn on the text/cutout layer again. Turn down ...
Using the elliptical selection tool, create on a new layer a perfect circle. Now using a gradient like in my example, fill this selection. You should come up with something similar: ...
Keep the selection active, inverse the selection and alt+control+click on its layer name to select outline of the layer. Create another layer. Use brush tool to add some white shades as ...