Here is a quick and easy guide to making a simple layer style that can be used on any shape to create a decent looking wood cut effect.

Step 01

Start a new document with your wood texture as the background:

Step 02

Next draw your shape, and fill it with a dark brown that closely matches your wood

Step 03

Set it’s Opacity to about 60%

Step 04

Give your shape an inner shadow and adjust its distance accordingly, I left mine at 14px then after some more playing around thought it looked better at 10px

Step 05

Give you shape a dark inner glow, it’s hard to see in this screen as the layer styles box is covering most of the picture, but it gives it adds to the edges that the inner shadow doesn’t really effect.

Step 06

Finally add an outer glow of a lighter brown than your original shape (I just used the colour picker randomly on the surrounding wood until I got a good colour).

Step 07

And …