Xara's new Bevel Tool is hot with a capital H . Select the text then select the Bevel Tool. From the drop down list of Bevel Types, select Flat. On the Infobar press the Inner Bevel button (the in-facing arrows) to apply the bevel to the inside of the text. Amazingly enough, the text is still editable!

Set the Contrast slider on the Infobar to 80%. From the Slider Type drop down list, select Size and change the setting to 2.

The embossed text looks nifty except the text wants to look recessed.

Piece of cake! Just grab the light source arrow in the center of the text and drag it 180 degrees to the bottom as shown. Now the text looks as if it's recessed.

We could leave it here. But we won't. You should be naming and saving your image as you go along. But in case you're like me, and have completely forgotten to do so, name and save your file now and take a break to rest your eyeballs.

OK Is everybody back from your break?

Not only can Xara apply some awesome bevel effects, but the bevel can be a separate color, same as with the Shadow Tool.

Find RGB 102, 153, 255 medium blue on the screen palette. Drag and drop the color onto the bevel.

We're going to apply transparency to the beveled text so we can see through it. It will be easier if the portion of the blue capsule shape is removed first.

Copy the beveled text to the clipboard (Ctrl C or Edit > Copy ).

Select the beveled text and the blue capsule and from the Arrange menu, select Combine Shapes > Subtract Shapes.

To paste the beveled text in exactly the same position from which it was copied, hold down the Shift and Ctrl keys and press V.

Select the beveled text, select the Transparency Tool and apply a Flat, Stained Glass transparency.

NOTE: Xara's Stained Glass operation is the same as Adobe's Subtract.