Create or select a basic button. Then, open the Layer Style dialog box by clicking on the Add a layer style button at the bottom of the Layers palette and selecting Bevel and

Emboss... from the menu that appears. From the Technique drop-down menu, select Chisel Hard and set the Soften field to 0px. Increase the Depth of the bevel to chisel "deeper" into the button.

Bevel and Emboss options for chiseled bevel

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