I created the clouds the same way I always do, by inking over die cuts - you can see a tutorial for that over on the Spectrum Noir blog. I used three different colors of ink to give it a morning sky feel, which works great with the sentiment I chose! I sponged ink on for the stenciled bit as well.
And do you see that pink spatter on the card? That was an accident- it's overspray from my eBrush, on another project (I did say this image panel had been sitting on my craft table for awhile!). But you know what? I LIKE IT!! It actually looks really cool, so let's just pretend I meant for it to happen,ok? Good talk :)