Make new image 125x125 with white background. Use Type tool and make a letter with a medium color, I used red. Render layer: Right click on the "T" on that layer and choose "Render Layer" .
Go to Filter>Sketch>Bas Relief, Detail = 2 , Smooth = 11, Light Direction Top Left.
Now brighten it up. Image>Adjust >Brightness - +60. This brings out the highlights.
Ok now you can stop here or you may move on to the next step.
Ctrl. Click the layer (Mac: Command Click) Make a new layer, contract by 3 (Select>Modify> Contract) and fill with 60% White.Should look like left.
I made a drop shadow on mine and added a little noise on the white filled layer.