cut-out effect

Open a new file using the dimensions you wish. I used 100 x 100 at 72 resolution in RGB mode.

Fill with black.

Pick the text tool and type in your text in white.

Click «filter» «blur» «gaussian blur» (2 or 3 pixels).

Add a new layer.

Select your text.

Click «select» «inverse».

Fill with the color of your choice.

Deselect your text.

Select layer 1.

Pick the move tool.

Move the text to where you want it.