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There are various ways to create both effects, but here are our favourites. To create clouds, select white from your swatches and grab the Brush tool. With an Opacity setting of about 20%, begin to lightly brush in the sky on a new layer until you have something that starts resembling a cloud. You may wish to add a light pink on top of it, or dial the layer’s opacity down to keep the effect subtle.
To add mist, create a new layer and fill with white. Go to Filter>Render Clouds, and select Clouds with your swatches set as black and white. Set to Screen, hit the mask icon, invert (Cmd/Ctrl+I) and with a 20% opaque white, so brush, mask the layer back in. This will give the illusion of smoke, fog or mist; again, lower the layer’s opacity for more realism.