STEP ONE ; On a blank canvas, change your background color to whatever you want
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STEP TWO ; add a textured image and change the blend mode to whatever you like.
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STEP THREE ; add your png. For this cover I suggest them sitting
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STEP FOUR ; add your title. Go to effects, transform and choose wave. I'll show you my settings, but you most likely will have to adjust yours differently, depending on the render. Move the title so it looks like it flows with the body.