1. Create a new file with 72 PPI and
white background. Create a new layer.
2. Select Elliptical Marquee tool. Place the cursor in the center
of the file using grids.
3. Draw a circle. Fill it with any color. Create
a second layer. Select it. Place the cursor in the center and draw
second circle of smaller diameter. Fill it with the color. Deselect
all.

4. Select the bottom layer with big circle.
Layer > Layer Style > Bevel &
Emboss
Try to experiment with the values.
5. Select the top layer with small circle.
Layer > Layer Style > Bevel &
Emboss
(style - Pillow Emboss)
Try to experiment with the values.
Trim the button to remove unwanted space with Image > Trim

6. Open the desired image file which is suitable to
your theme. Select Move tool. Drag the image on the button file
and adjust so that the whole button will get properly covered. In
the layer palette you will get image layer. Keep this layer selected.

7. Duplicate the image layer and drag it down to bring
it on the top of the big circle layer. Select the image layer.
8. Layer > Group with
Previous (ctrl+G). Repeat the procedure for the top image
layer also. The layer position will be as follows.

9. Save the file.

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