1. Open a new file of about 1800x1800pixels. Go to File>New.

2. You can change your background to any color except white because later on we will be working with white. Create new layer and name it as "disk". Set the foreground to your chosen color, mine is #5b83a6. Select the Elliptical Marquee tool  and on the options located above the screen, change the style from NORMAL to FIXED SIZE. Set the height and width to 1600px. Click anywhere to position the selection. You can use the arrow keys to adjust. But the easiest way is to click+hold and drag the selection to its position. Then press ALT+Backspace to fill. Press CTRL+D to deselect.




3. With still the disk layer active and the Elliptical marquee tool selected, this time set the height and with to 200px. Position the selection on the center of the disk. Press Delete key. This is the hole at the center. Press CTRL+D to deselect.



4. Click the Add Layer Style button at the bottom of the Layer palette and choose Stroke. Set the Size to 15 with White as color. Click OK. On the Layer palette, right click on the Stroke and choose Create Layer. This will create the stroke its own layer.





5. Select the disk's outer stroke layer and got to Filter>Artistic>Plastic Wrap and do the following settings: Click OK when you're done.





6. Lower its opacity to about 50%.





7. Now, create again new layer and place it above all and name it as "center_transparent". Set the foreground to white. Again, select the Elliptical Marquee tool with FIXED SIZE selected and set the height and width to 300px. Click to position the selection at the center. Do not deselect yet. Click the Subtract from selection option and adjust again the height and width to about 190px and click+hold+drag to position it at the center. Press ALT+Backspace to fill it. Do not deselect yet.




8. Go to Filter>Artistic>Plastic Wrap and do the following setting:..Click OK when you're done. Lower also its opacity to about 50%.





9. After you have lowered the opacity you can see the light blue shade color from the disk layer. If you already deselect the selection, CTRL+click on the the thumbnail of the center_transparent layer. After you have selected, click the disk layer to make it active. Then press Delete. This will erase the shade part coming from the disk layer. Then select the disk's outer stroke layer and press also Delete. It will erase also the part of the disk's outer stroke layer. Press CTRL+D to deselect.




10. If you want to have a little effect like line, create a new layer and place it above the disk layer and name it as "effect". Right click on layer name and choose Create Clipping Mask. This means that the effect we will be making is being clipped only to the disk layer. Fill it with white color. Go to Filter>Pixelate>Messotint and in Style, choose the Short Line. Click OK.





11. Go to Filter>Blur>Motion Blur and set the 0 with the distance of about 500 pixels. Click OK.





12. Change the Blending Mode to Multiply and it will be looking like this:




13. In creating the shadow, we will use the disk's outer stroke layer. Make it active and click the Add Layer style button and choose Drop shadow. Do the following settings: Click Ok when you are done.








14. We are almost done with our disk template. We can now make our own designs. Choose now your photo to place in the disk. This is my chosen photo:

 

Drag this photo below clipped effect layer. Clipped also the photo to disk layer. With Move tool , adjust your photo according to your desired. I also enlarge it a bit. By adding text, this is what i've got:




15. If you try to hide the background, you can see the transparency we made in the center_transparent layer.




TIP: Whatever your designs, can it be a photo or drawing or something, just make sure that it is being clipped in the disk layer.

From the bue background we made, here is my example of design:





Note: This is not the correct disk dimension. This is just for photo effect only.