1.Create a new file. A larger file is better. I used 600*500px with white background.Draw a circle with 150*150px dimension(TIP:Hold shift button while dragging to get perfect circle). I used #b5dfff color.



2.Double click the circle layer in the layer window to bring layer style window.(or you can select from menu Layer->Layer style). Apply the following effects.









3.Now the circle will appear as:



4.Now create a new layer and draw a white circle slightly smaller than the previous circle so that it looks like:



5.Apply the following Layer styles to the new circle:



6.Now change the blending option of the new circle to soft light. Now the final image looks like.