Solution

Text layer on top of image layer

Click on the Create warped text button on the options bar to bring up the Warp Text dialog box. From the Style drop-down menu, select a warp style that works with your object. As you can see from the example shown here, I'm using the Arch style with a negative Bend amount and a very slight Vertical Distortion (to account for the tapering of the mug).

I'm using an image of a yellow mug as my curved object, but you might have something else in mind.

Create a new Photoshop document, and place your object on a new layer. Use the Text Tool (T) to type some text on your object. This should create a new layer on top of the object layer, as shown at left.

Warp Text settings

You can fine-tune the effect by altering the text color, and by experimenting with the opacity and blend mode settings of the text layer in the Layers palette. In the image below, I've set the blend mode for my text to Multiply, and lowered the Opacity to 65% to make the text look like it's printed on the mug.

Adjusting Opacity
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