1. Write the text
Use the text tool to write the words you want to outline. Set the font and size, as well as the letter spacing. You won't be able to edit the text after it is outlined, so make sure you like the layout. I used the font Sevillana here. Make sure that the text has no stroke.
2. Duplicate the text
Switch to the select tool and select the text. Duplicate it, then change the fill color of the duplicate. The color doesn't matter, but changing it will make it easier to tell the difference between the outline and the text in the next steps.
3. Convert the duplicated text to a path
With the duplicated text selected, click
Object to Path.
This converts each letter to a separate path and makes a group of all the letters. The next steps will convert them into a single path.
Ungroup the letters.
Combine them into one path.
4. Expand the outline
To make the outline path bigger, click
Dynamic Offset. This will put
a diamond handle on the path. Dragging this handle will make the path
bigger or smaller.
Lower the outline path behind the text, then drag the handle to make the outline as big as you want. Zooming in can make it easier to make small adjustments in the outline.
5. Set the colors
Now you can set the fill colors of the text and outline. Here I used a gradient for the text and a flat color for the outline.
Group the outline and the text together to create the final outlined text.