Double click the layer to open the layer style window. Apply settings as shown.





This should be generally what the effects should look like. Yours will vary as well.



Press Ctrl+Click the layer thumbnail to highlight the selection. From select menu select modify>>contract. Contract the selection by 2 pixel. Select the image layer. Press Ctrl+J to copy and paste the selection in a new layer.


 
Move this layer above all the layers in the layer palette. Change the layer mode to "Pin Light". 



The end result should be something similar to this.