Implode text in photoshop (lack of a better term)

1

I need to create a “trap” of text. I seem to remember using some method to hollow out a text character. For example, creating text, selecting the text and then reducing the selection by say 5px and then cutting out the selection? sorry if this is not making sense. it seems simple enough but i cannot for the life of me figure this out. im trying to finish up a banner tonight so any help ASAP would be greatly appreciated.