Step 1
Create a new document in Photoshop, I used 1920×1200 pixels. Then apply a Gradient Overlay on the background using a layer style. Use normal blending mode, 100% opacity, radial style and colors #07090b and #27160a. Also increase the ratio to 115%.
Step 2
Use the Tool (T) to type CLOUDS in all caps. The font I used is Helevtica Neue Ultra Light. It's important that you use a very thin font because we're going to be creating this as a path. Then go to Layer>Rasterize>Text. Then hold down the Command/Control key (PC) on the Layers panel and click on the layer thumbnail. This will create a text selection box (Translator's Note: Why doesn't it work on my machine? -_-).
Step 3
Keep the selection box selected in the previous step, enter the path panel, click the icon and select Create working path (1). Then save the path to use later. You can save the path by clicking on the icon (3) in the upper right corner.
Step 4
Edit the path with the Direct Selection Tool (A). Start deleting the parts within the path (as shown below), leaving only one path for each letter (as shown in Figure 2).
Step 5
Let's create a brush that will be used to create the clouds. But you can see in the picture below that you need to create a brush. Go to Window > Brushes. Choose a soft, regular brush. Choose shape features, textures and other features. Texture is very important and you have to change the brush tip size every time you change the scale. (Don’t rush this step, take your time)
Step 6
Using the Direct Selection Tool (A) again, right-click on the path of the image and select Stroke Path. A dialog box will appear, and in the Stroke Path window, you can select the path you want to stroke. Make sure you're using the selected brush we just created, and then select the brush. Also make sure you have selected white as the brush color (1). We will repeat this step 2 times, but each time on a new layer. The first time we used white, the second time we used black, and the third time we used white. This will add area to the clouds, making them more realistic.
