Select the Type Tool. Click on the document. Now you will see the Type Options. Make a large letter. Choose the color of text you want, in this case I choose this color blue.
Hold down the Ctrl key (Mac: Command) and click on the type layer to load the text as a selection. Switch to the Channels pallet (Windows>Show Channels). Make a new channel. Fill this selection with white. Now make another new channel. You should now just have a selection for your text (like shown) on this channel.
Feather the selection (Select>Feather) and use a value of about 14.
Now fill with 100% white (Edit>Fill). Deselect: Ctrl-D (Mac: Command-D)
Go to Filter>Pixelate>Color Halftone. If you are doing this with smaller text then you might want to have a lower Pixel radius, the lowest you can go is 4. For my size I entered 8 and clicked OK.
Switch back to the Layers Pallet. Click on the layer with the Text. Now go to Layer>Type>Render. Hold down the Ctrl key (Mac: Command) and click on the layer with the type, this will make a selection for the text. Now contract this selection by going to Selection>Modify>Contract and enter about 3 or 4 and click OK. Smaller text contract less, larger text contract more. This is just to make a small edge on our text.
Go to Filter>Render Lighting Effects. Make sure "Alpha 2" is selected for the Texture Channel. Make a spotlight and point it down from the top to center. Move the Material Plastic down to 50, this gives a nice result. Try and match your settings close to mine as you can. Make your spotlight wide enough giving the text light all around it. After you got it, click OK.
Deselect Selection: Ctrl-D (Mac:Command-D)
Ok now use the Layer effect to make a bevel. Go to Layer>Effect>Bevel & Emboss. A good tip for the highlight color is to choose the color of the text you have and then make it much brighter. The settings below will give you the sharp edged bevel. After my Bevel I choose "Drop Shadow" from the pop up window.