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In this video tutorial, the partner demonstrates how to create text step by step. They suggest using the bangers or beb is new font but decide on the bull font for this particular video. They show how to add an outline by going to shading, selecting the element, enabling and increasing the thickness, and changing the color to black. Additionally, they explain how to add a drop shadow by dragging it onto the clip, increasing shadow strength, decreasing distance and blur, and adding a second drop shadow for a stronger effect.