Designing logo for a cafe

Create an ellipse using elliptical shape tool.

Enable "subtract from shape area" at the top bar. Create a rectangle using rectangular shape tool.

Select the shape using path selecton tool and click combine from the top bar. It will combine the path and ellipse and rectangle paths will n longer exist.
Select the shape using path selecton tool. ress Ctrl C and Ctrl V to copy paste the path in same layer. Press Ctrl T and scale down a bit.
Move the scaled down path a few pixels to left.
Enable "subtract from shape area" at the top bar. It will create a hole in shape.

Similarly create cup handle doing steps mentioned above.

Scale down, rotate and place as shown.
Create a rectangle using rectangular shape tool.
Press Ctrl+T. Right Click and select Warp. Select Bulge from the preset warp shapes on top bar. Apply settings as shown.

 

Again Press Ctrl+T. Right Click and select Warp. Select Arc Lower from the preset warp shapes on top bar. Apply settings as shown.
Create an ellipse using elliptical shape tool.
Enable "subtract from shape area" at the top bar. Create another ellipse inside the first one using elliptical shape tool.

Rotate the plate and place as shown.

 

Duplicate layer, scale down and place as shown.
Create an ellipse using elliptical shape tool.
Using convert point tool click on top and bottom node of the ellipse to create corners instead of curves.
Select the shape using path selecton tool. ress Ctrl C and Ctrl V to copy paste the path in same layer. Press Ctrl T and scale down a bit. Enable "subtract from shape area" at the top bar.
Scale down horizontally a bit. Right click the layer in layer palette and rasterize it.
From filter menu select Distort>>Wave. Apply settings as shown.
This will create a steam shape coming out of coffee cup.
Now select each layer and fill with colors of your choice.
Type cafe name below the logo.