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Steve Patterson from photoshopessentials.com teaches how to place an image within text using Photoshop by utilizing clipping masks. This classic effect is easy and simple in any recent version of Photoshop. Open the desired image and make a copy of the background layer. Use the Type Tool to create text, position it above the image layer, and create a clipping mask. Adjust the image as needed within the text. This technique allows for creative and visually appealing designs.