For this tutorial we are using the Free Font “Wask New” from Vasilis Skandalos.
1 - In Illustrator, create a “New Document”.
2 - Select the “Type Tool” (T), choose your font (we used “Wask New”) and type your text. Use Black as “Fill” color.
3 - Right-click on top of it and choose “Create Outlines”. Center it using the “Horizontal and Vertical Align Center” options on your Top Menu and make sure that “Align to Artboard” is selected. Or use the same options in the “Align Panel”.
4 - Make a “Copy” (Command/Control + C) then “Paste in Place” (Shift + Command/Control + V) and change the Fill color to White.
5 - With the new text still selected go to Object > Path > Offset Path and use an “Offset” value of 0.3 cm. Then, go to the “Pathfinder Panel” and choose “Unite”.
6 - Right-click on top and choose Arrange > Send to Back.
7 - Now, make a “Copy” and “Paste in Back” (Command/Control + B) making sure that the copy is at the bottom of everything. Change the “Fill” color to Black and make an “Offset Path” with the same value as before. Go to the “Pathfinder Panel” and choose “Unite”. Repeat “Steps 4 to 7” alternating Black and White text until you reach the outside of your Canvas.
8 - Select each Black Path and replace the Fill color with some other shades from the “Swatches Panel”. Select one of the White Paths and go to Select > Same > Fill Color to select the rest.
9 - Go to the “Appearance Panel”, click on the “Effects Menu” on the Bottom-Left side of the Appearance Panel and navigate to Stylize > Drop Shadow… and use the following values. Once you are done click “OK”.
10 - Now select all the Colored Paths (Shift key) and apply a “Drop Shadow” but use these values instead.
11 - Select the “Rectangle Tool” (M), draw a Rectangle covering as much of the colored paths as possible. It should have “NO Fill” and “No Stroke”. Then, select everything, right-click on top and choose “Make Clipping Mask”.
12 - Check it out.