It's merely a matter of using the proper fills and strokes and then Effects applied via the Appearance Panel.

What have you tried so far? Where are you stuck?

Don't give up too soon.

Read the manual and watch some TV: http://tv.adobe.com/search/?q=%20appearance%20panel

Then try. Try again. Post your results and ask again.

You would need to manually add shapes to create the gloss effect on the K, or use Gradient Meshes.

Actually, just highlight the White Stroke in the Appearance panel and Choose Effect > Pathfinder > Add. Note the image I posted above has this effect for the white stroke specficially for this reason.

Add is "Unite." Depending upon which version of Illustrator (and where within Illustrator) you look, the label changes.

It creates one object out of overlapping objects. So for this example, it dynamically treats all the type objects as one element, "welding" them together where they overlap.

It simply traces the outline of the entire object rather than it's inner objects. Or, in other words, it looks at the edge of the ENTIRE group rather than the edges of the group's contents. Sort of a "find edges" thing.

You can continually add strokes as often as you want. A stroke is not a path. That's an important distiction. A path is merely a spine, it has no color or weight. The stoke is merely the color and weight given to the visible element which uses a path as a spine. Using the Appearance Panel doesn't add paths. It adds strokes... or additional visual definitions based upon the lenght and location of the same spine.

Here's an example.

There are essentially 2 levels of depth in any illustrator file. There's the spine or wireframe/outline level, then the Appearance or Preview level. The preview level simply adds color and dimension to the objects on the outline level. This is similar to how 3D apps work.. they have the construction planes, then the rendering on top.

I have two paths.

These two paths are my wireframe or spine. From this spine, I can use the Appearance Panel to create any number of visual definitions based on the length and location of these paths/spines. I group the two paths and then use the Appearance panel.

I've added 4 strokes and a fill... but I still only have the 2 original paths. Note the Add effect for the yellow strokes. And note how it essentially traces the outline of the group rather than the star and rectangle independently.

Yes. But you lose that ability often. All it takes a is the additional Path > Offset Path effect to move the stroke.