1. draw a circle
2. type the letters you want in a new layer
3. right-click on the letter layer and choose convert to shape
4. cut the letters after converting them to shape
5. select the circle shape layer
6. change the mode from new layer or combine to subtract front
7. Paste the letter shapes

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: Logo effect re-creation in PS I want to create an image similar to this - I don't need the fancy bevelling edges, I just want to put the letter inside the circle.

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