Creating the text effect is actually straight forward. Tricks of the trade and all that.
Select the picture and clone it, (Edit > Clone, or ctrl+k. Don’t move either picture.
Type your text and drag it to the place you want it.
With the text selected, shift+click the picture.
Arrange > Combine Shapes > Slice (cut) Shapes, or ctrl+4
Click the Shadow Tool and choose the Glow Shadow
Open the colour picker
Ctrl click the shadow and use the dropper to select a colour from the picture
Adjust stuff
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