Illustrator :: How To Make Object Partially In Front And Behind Another Object

I have the words Kuhns Creations here, it is going to be the logo for my website. In the end the letters will all be the light blue color that "Kuhns" is right now, I'm just using the different colors to explain my problem. I want the pink part of the "C" to be in front of the "K", but I want the black part of the "C" to be behind the "K", giving the illusion that the "C" is passing through the "K" (this will only be visible cause of the drop shadows on both letters, since they wil both be the same color) Is there a way to do this?

I got this effect in Photoshop, but I need to do it with vectors because the size of the image that has to be uploaded to my website is so small that you lose all detail if its a bitmap (52 pixels x 103 pixels) In addition to the effect explained above I am trying to get a bevel effect. In Photoshop it works and is easy to do but in illustrator the settings are all different and anything I enter looks totally different.

The settings that I'm using in Photoshop are: Style: inner bevel, technique: smooth,depth: 1%, direction: up, size 10 px, soften 0 px, angle:,120 degrees, altitude: 30 degrees, highlight mode: screen, Opacity: 75%, shadow mode: multiply, Opacity:75%. How do I get this same effect in illustrator?