How Do I Make Text in Photoshop Look Sunken?

1). Open Photoshop and create the background in which you want the text to appear sunken.
2). Click on the "Text" tool. Change the text color to a color that will appear on the background. For example, if the background color is a dark color, set the text as a light gray or white.
3). Right-click on the text layer and select "Blending Options."
4). Click on "Inner Shadow." Make sure the "Preview" button is selected. Adjust the distance, choke and size to set how deep the text appears.
5). Add an outer bevel to refine some of the edges if desired. Click on "Bevel and Emboss." Select "Outer Bevel" from the "Style" drop-down menu. Then, select "Chisel Hard" from the "Technique" drop-down menu. Adjust the depth and size as desired.