I tried it with my Blogger here and I found a small adjustment to work in Blogger.
What you have to do is create class dropcap and add CSS.
You can see a big N at the beginning of this paragraph.
border: 4px double #ffcc00;
font-family: "Times New Roman", Times, serif;
margin: 0 10px 0 0;
And you need to add span with class="dropcap" to the first letter of your paragraph like this.
<span class="dropcap">B</span>BC News.
It becomes like this.
You can add more class like .blue after .dropcap
And add this class to a span tag.
<span class="dropcap blue">C</span>NN News.