Start a new document, fill the background colour in with the colour #525252
Type out your text, I used the font called "Phrixus" in any colour.. it doesn't matter at this stage.
Bring up the blending options, first choose outer glow:
And Stroke and press OK:
This is what you should have so far:
Make a new layer. Hold CTRL on your keyboard and click on the text layer in the layers pallet, this should make a selection around the inner text.
Grab the elipticle marquee tool, hold ALT, drag a ovral shape by holding your left mouse button.
Let go of your mouse button which will produce a selection like below. Then go to [ Select > modify > contract > ] by 1 pixel.
Fill the selection in with white, set the blending mode to overlay and opacity to 87%. Press CTRL+D to deselect the selection, producing the finished text result as shown below!
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