Effects that are applied to text can be applied to other objects in Photoshop as well. It’s not like there are “only” text effects and “only,” say, shape effects. These things are pretty interchangeable and work well across the board. And speaking of effects, there are about a million different ones available. It boils down to what you want to see on your canvas. For instance, if you create a certain Drop Shadow effect and change the contour and push the Size slider back and forth, you can make that shadow look like either an emboss or an outline. If you keep that slider in the middle somewhere, the shadow is half and half.
It’s super easy to add a cutout (or outline) effect to something in Photoshop. All you need to do is create your object, whether that be text, a shape or something else, and then double-click on the layer so the Layer Style palette appears. Then, click on the Drop Shadow option. The most important setting to change is in the Quality area. If you click on the Contour drop-down and change the setting from the default to Rolling Slope – Descending, you’ll notice the preview of the shadow change in your work area. Once that’s done, you can alter the Opacity and Blending Mode settings as well as the Angle, Distance, Spread and Size. While most of these settings are critical for basic drop shadow effects, you won’t get the outline unless you change the contour setting. That’s a must.
To see a thorough post on this topic, with screenshots and all, please click through below.