• Start with any background texture or color. Open a new layer, type some text on it and then save the selection.
• Then click Edit / Stroke and enter a number like 4, click on the center button, and hit OK.

• Now select all (CTRL+A) and select Filter / Blur / Guassian Blur and type in 3.

• Hit CTRL+ALT+4 (This loads the saved selection again) and fill it with a color or texture of your choice.

OPTIONAL TIP:

• To add a 3d effect, I applied Eye Candy Inner Bevel Filter.