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[attachment=1003]

Heres how you do it.

Type a letter.
Lock the alpha channel and run a shaped gradient over it. White to a mid gray.
Blur (say 8px)
Apply an Alpha Curve to get a slightly rounded letter.
Merge down with black layer to get a layermask.
Apply layermask to a layer with your colour of choice.
Put a white layer behind.
Set layermask-layer to 'Dissolve' Mode and reduce Opacity (88%).
Merge down.
Apply G'MIC - Recursive Median with a Radius of 2.
Apply Colour To Alpha with white.