Well be making this:

__________________________________________
Step 1:
Open a new document, 200x200, white background.

Step 2:
Paste in your render or text. In my case ill put "Insane".


Step 3:
Layer>>Image to Layer Size

Step 4:
Layer>>Transparency>>Alpha to Selection

Step 5:
Create a New Layer and insert it under your text/render.


Step 6:
Select>>Grow


Step 7:
Select your Foreground color(in my case RED).

Step 8:
Hit CTRL+comma on your keyboard, or go to Select>>Fill with Foreground Color.


Step 9:
Select your Layer under the text.
Filters>>Blur>>Gaussian Blur


Complete Project: