#circle text

[1] Select the Ellipse tool

Before making the circle, make sure to select Path, not Shape or Pixels.

TIP: To create a perfect circle, hold down shift while creating the shape.

This is what it looks like:

[2] Select the Text tool (shortcut key: T) and hover your cursor over the circle outline, click once the text cursor has a squiggly line like this:

[3] Add your text!

To adjust your text from this:

to this:

[3A] Select the Path Selection tool

[3B] Click and drag the text inwards like this: