Cartoon Clouds

Step 1

Use the Elliptical Marquee tool to make an oval. Fill this with white and give it a bluish gradient overlay. Make sure the top color for the gradient is white and the bottom is a light blue.

Step 2

Duplicate this circle 4 times and position them randomly around your document. Alter the sizes on each one so they're different. Make sure they all overlap when you position them.

Step 3

Merge all of the layers together. Duplicate this combined layer. You now have 2 similar layers. Pick the bottom layer and give it a light blue 3px stroke.

Step 4

Now goto the top layer and apply a gaussian blur on it. Set the blur radius to 4. Double click this layer and apply a Bevel and Emboss. Set depth to 80, size to 5, soften to 16 and the shadow color to a light blue.

Final Result: