How to cut out type from a thicker outline

[Nick33376208xp9l]

I am trying to create a thick outline text area for cutting on a vinyl cutter. I started with text, converted to outline. Then I offset the path to make a thick area. I am now trying to cut the orignal size text out from the inside of the offset lettering. I can't figure it out. I basically need it to look like the attached image but where the inner white lettering is a cut out, so that when I send to the vinyl cutter i can weed out the inside. It's hard to explain but I hope this helps and someone knows how to do this! 

[Monika Gause]

It would depend on how the outline view looks. You probably need to first select all the white letters and with the Pathfinder panel unite them

ANd then select all the black letters and unite them as well.

Then make a compound path out of both of them.

[Nick33376208xp9l]

thank you. the image you provided is exactly what i'm trying to acheive. however, this is what I was trying and when I do the minus front command, everything just dissappears. i'm not sure what I am doing wrong. Here are my steps. 

1. on the black text - offset path

2. drag select all the black letters and "group"

3. drag select all the white text and "group" 

4. position white text in front of black text

5. select both black and white text

6. Click "minus front" in pathfinder tools

[Monika Gause]

Grouping in Pathfinder will not work. Instead of grouping them you need to make them into a compound path (as I wrote)

[Nick33376208xp9l]

i tried the workflow you suggested, with the same result. I selected the black letters that had the offset path applied. I chose unite in the pathfinder. I also tried making it a compound path. It basically removes the offset path feature so then it looks like the original text again. 

[Monika Gause]

Compound path is in Object > Compound path > Make.

If you want to use the Pathfinder instead, do it this way:

https://youtu.be/tp3oxp7ybVs

When Compound paths do not seem to work, then often it's caused by the fill rule. You can set it in the Attributes panel.

[Nick33376208xp9l]

i don't know what the fill rule is? 
I watched this video. I am trying to do this exactly like in the video. But when I get to the step where the color was changed to yellow? Mine just changes completely. The orininal color is not left on the inside. then none of the other things work. When I select the text that has been offset  and go to object>compound path>make it just dissappears. 

i am doing something wrong from the beginning but i can't figure it out. 

[Nick33376208xp9l]

check out my screen recording. 

[Nick33376208xp9l]

By the way, thank you so much for helping me. 

[Nick33376208xp9l]

i think it was because I was using Effect>offset path. 

I didn't realize those were different. i'm trying again now. 

[Nick33376208xp9l]

I GOT IT! thank you so much. 

[Monika Gause]

You're welcome!

[Mike_Gondek]

With 2 groups, one for black fattierd type, one for white type exact shape.

Pathfinder >> Minus Front

You can use toggle Shift command D to go between showing transparency in checkerboard and back to normal view