i'm trying to achieve the text effect in the image attached ("It's My Baby Shower"). I've tried to use Object > Path > Offset Stroke as you can see in the ("I am a baby") text but the overlapping strokes in the middle cannot be removed. How do I create text stroke outline with offset for an enclosed bubble effect? Appreciate your help.
Convert your text to outlines first. With the text selected, right-click, create outlines, then combine them into a compound shape (CMD+8):
Offset the path. Object > Path > Offset Path...
Move your newly created path below your text layer, in the layers panel. Change its fill color to white. Add stroke.
You can get the same effect with a single live text object (meaning you can have this effect and still be able to edit the text) using the Appearance panel.
With your text selected, open the Appearance panel (Window → Appearance). Using the buttons at the bottom of the panel add a fill and two strokes.
Set your fill and drag it above the strokes in the panel.
Use the bottom stroke to create the outer stroke, just increase the stroke weight until you're happy with the offset.
Use the stroke above that to "cut" the part between the text and the outer stroke. Set the stroke to white and increase the stroke width until you're happy.
Now, if you want the inner part to be white you're done. If you however want the inner part to be transparent you can use something called a "Knockout Group".
Still in the appearance panel, open the "Opacity" options of the entire object (the one at the bottom, not on any specific fill or stroke) and check "Knockout Group" (hit it twice so that it has a check-mark, not a line).
Then set the opacity on the middle stroke to "0".