This was done on the Expression but could also be done on the lil' Bug. I used Plantin Schoolbook on CDS for the design (cut file below pics). I used .22 chipboard at a blade depth of 5, full speed, full pressure and multi-cut on 3. Heavy cardstocks on both sides of each chipboard page and patterned pieces are just standard scrapbook paper. Be sure to reset blade depth to 4 and lighten pressure when cutting standard paper to avoid tearing.
Click here for the cut file but note this disclaimer: Because this was my first word book, I didn't realize that manipulating the width of the letters would render the shadow function less "functional" which is to say, the overlay letters do not fit perfectly within the chipboard cuts. I didn't realize this until I had already cut the chipboard portion of the project and I wasn't inclined to fix it.