Stitched Text Effect
Here, is a quick and simple trick to make a stitched text effect using strokes in the Appearance Palette.
Type your text and go to the appearance palette. Set the Fill to white and Stoke to green. Drag the Stroke properties below the Fill. Open the Stroke Palette and set weight to 2pt and remember to tick Dashed Line to make the dotted effect. Next, set the dash to 2.
Add another thick stroke around the dotted lines. Click the options in the Appearance window (the triangle at top right corner). Choose Add Stroke. Drag it under the dashed stroke you have created just now. Set the Stroke to 8 and change it to grey colour. And get the stitched text effect. Have fun!