1:Type word
2: Select word, Ctrl+Shift+0 to turn into shape
3: Select word shape, Ctrl+Shift+G to separate into individual objects.
4: Separate letters into individual layers, lock and hide all letter you're not working on
5: Select letter, Ctrl+C
6: Alt+Click letter(to duplicate), drag slightly in direction
7: Select both, Pathfinder --> Subtract
8: Select remains, move up away from area
9: Ctrl+F (to paste original letter in location)
10: Repeat 6-9 until you have enough chips, select all letters chips
Object-->Compound Path --> Release
11: Crtl+F to paste base letter, Select individual chips and position into place
12: All chips in place, select all, Pathfinder-->Add
13: Repeat for all letters
14: Unhide and unlock all layers, Ctrl+G to bring all layers together, Ctrl+Shift+G to ungroup, select all Pathfinder--> Add
15: Select word, Object-->Path-->Offset Path, input the desire amount
16: Select colors for high and base