Keep focusing on your new stroke and simply click on the "Stroke" piece of text to open the Stroke fly-out panel. Set the Weight at 2px and check the Align Stroke to Inside button. Make sure that your stroke is still selected, lower its Opacity to 3%, change the Blending Mode to Multiply and go to Effect > Path > Offset Path. Enter a -7px Ofset and click OK. Return to the Appearance panel, select the entire path (simply click on the "Path" piece of text from the top of the Appearance panel) and go to Effect > Warp > Fisheye. Enter the properties shown in the following image and click OK.