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Step 4.
This is the 2nd part of this Photoshop tutorial. Use the selection to cut (layer via cut) the shape and delete the area of it that's outside of the text. You may need to use the polygonal lasso tool to delete any of the shape that's covering the other letter. Next, do the same with the other letter (s), creating a shape over it, using the selection to cut (layer via cut) it out.
a)   b)
 
Step 5.
You should end up with something like in image a). Make a selection using the original text again and contract it by 1 pixel.
a)   b)
Step 6.
Fill a new layer with dark grey, feather (select > feather) the selection and contract it by 6. Then delete the area of dark grey (4D3B3B) that's selected, leavig you with image b).
a)   b)
Step 7.
And that brings us to the end of this Photoshop tutorial! :)
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