For this you will need eye candy 3.0 (a plugin for PSP) and PSP (I am using PSP 8 although it might work in other versions.
First start a new image and type your text in any colour (you will change it later) but make sure its created as floating. Next go to Effects > Plugins > Eye Candy 3.0 > Cutout. Then make your settings like mine:
Dont worry about changing the colours its easier to stick with grey and then colourize it later.
Next go to Effects > Plugins > Eye Candy 3.0 > Glass. Again make your setting like mine:
Then click this button: from the side menu and select the colour you want your text to be then just go over you text in that colour. You should end up with something like this:
BTW. This works a lot better with thick, chunky fonts.