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You can download Layer Style Effects here, names of the effects correspond to the names of the layers in this tutorial.

- Create a new document 300*300 px. Fill background layer with any color or pattern.
- Draw a circle in a new layer using
Ellipse Tool. Apply the effect named "Shape_1"
- Copy previous layer and reduce it's size by 10% percent.
- Apply the effect named "Shape_2"

- Create a new layer.
- Ctrl + Click on "shepe_2" to load selection.
- Click on "D" key to Default Colors. Choose Filter > Render > clouds.

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