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Create
a new image the size and color of your choice.

Select a font for your text. I recommend a thick, fat font. Make
your text the same color as your background.

Type in your text, and keep the "marching ants" around
your text.

Click on 3D EFFECTS>CUTOUT. I used the following settings:

Again, keep the "marching ants" around your text:

Click on 3D EFFECTS>DROP SHADOW. I used the following settings:

Click SELECTIONS>SELECT NONE.
Now we can add some texture to our text and background. Click on
ADJUST>ADD/REMOVE NOISE>ADD NOISE. I used the following settings:

Now you have text that looks like it was carved into stone!

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