Quote Originally Posted by Mcffee View Post
Sample below. It's easy when it's a hole in an object, creating a bitmap copy and cut the outer shadow away. But with this one the shadow is the edge so that's different. And I'm not a big fan of bitmaps.
No need for bitmaps. But you will need an object with a hole for an internal shadow using the shadow tool.

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You can, of course, create any shadow you like by editing an appropriately shaped and coloured object.