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In this tutorial, Steve Patterson from Photoshop Essentials demonstrates how to create the popular effect of placing an image inside text using Photoshop. By utilizing clipping masks, this task is made simple and easy. Although using Photoshop CC in this video, the steps can be followed in any recent version of Photoshop. The tutorial includes a text version for reference. To start, open the desired image and create a copy of the background layer.