You can create fun type effects by converting letters to outlines and then adding text to those outlines with the Type on a Path tool.
Start with a large letter in a basic sans serif font.
With the text frame selected, press Command+Shift+O/Ctrl+Shift+O to convert the letter to outlines.
Press the forward slash key (/) to remove the fill color. Then press Shift+T to switch to the Type on a Path tool, and click on the letter outline where you want the text to start.
Type the text and use spaces, kerning, and tracking controls to adjust the position of words as desired.
If you want to use a letter composed of more than one path, (like a letter O) you have to release the compound path after converting to outlines (choose Object > Paths > Release Compound Path). Then you can add text to each path using the Type on a Path tool.
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