1. load/create some images of text
2. duplicate and post-process images (colour of text, size of image, gaussian blur)
3. draw them with per-pixel alpha transparency, one atop the other.
You could read the XCPClock
] article here at CP, by Hans Dietrich. It and many, many other articles deal with using images with transparency.
A few links:
AlphaBlend function and 32 bit bitmaps with alpha channel
Per Pixel Alpha Blend
Guide to Image Composition with Win32 MsImg32.dll