How to add drop caps in photoshop?
It's an option in InDesign, CSS, and MS Word. I'm not finding it in Photoshop CS5.
Photoshop has no automated drop cap feature. You will have to create two separate text elements and "fake" the drop cap.
In reality, Photoshop is not designed to be a type-intensive application. If it were, it would at least have a glyphs panel.