Imagine the light source in on the left. How the shadows would go if you cut out your initial in a white piece of paper?

Shading will make it look real.

Use any of the shading techniques (crosshatching, hatching, or blending) to create drop shadows to simulate the cutout effect.

Start with a letter outline. Use your initial if you like. Make sure there is plenty of space inside the letter to add the “cutouts”.

Shade inside the letter.

that is shading the second layer that is under the top letter cutout.

Add drop shadow effect by adding darker value at the edge and fading it gradually. Incorporate the letter outline into the shading, so that the outline disappears.

If the light source is at the top left – the left edges of the letter cutout will be darker and have more contrast.

Sketch out the holes (cutouts) on the second layer.

Just random organic shapes.

Shade inside each hole to reveal the third layer.

Make sure the tonal value od the third layer is darker than the second layer.

Add drop shadows around the edges.

Then shade inside the next hole. Keep the value consistent for all shapes.

Complete all shapes for layer 2 cutouts.

Outline cutouts on layer 3.

Shade inside with a darker value to reveal the layer beneath.

Add drop shadow.

Double check that each layer has a consistent tonal value. each next layer is darker than the layer before. Drop shadows start at the outline and completely incorporate it into the shading.