This process took me entirely too long to actually figure out how to do myself. I even spent a couple of bucks on an solution off the Unity Asset store and still struggled.
I wanted to write this tutorial for anyone else that might want to add glow effects to their projects and to hopefully avoid them having to ride the struggle bus like I did. Take a peek at the end result here:
To get started, create a new Unity 2D project. Once created, open the Package Manager under the Window menu item and search for the Universal RP package, install it.
In the Project view, right-click and select “Create >> Rendering >> Universal Render Pipeline >> Pipeline Asset (Forward Renderer)”
This will create 2 objects, name the first object 2D Render Pipeline and delete the object named 2D Render Pipeline_Renderer.
Right-click in the Project view again and select “Create >> Rendering >> Universal Render Pipeline >> Pipeline Asset (Forward Renderer)”
Rename this object to 2D Renderer. You should now have two render objects like this:
Click on the 2D Render Pipeline object and in the Inspector, drag the 2D Renderer object into the Renderer List. Also check the HDR checkbox under Quality.
Now under the Project Settings which can be found under “File >> Build Settings >> Player Settings” select the Graphics tab and set the Scriptable Render Pipeline Settings to the new 2D Render Pipeline object we just created.
Under the Main Camera Inspector you will see some new options, check the box for Post Processing under the Rendering drop down.
If you want, you can change the background of the camera to black to help add to the glow effect.
In the Hierarchy, right-click and create a new 2D Sprite. On the Sprite Renderer of the new object, select the Knob sprite (or provide your own).
Also on the Sprite Renderer, set the Material option to Sprite-Lit-Default (you will have to click on the little eye, to show all of the options).
Now all you have to do is add a Light object to your new sprite and viola, he shall GLOW!
You can play around with the effect of the glow by tweaking these settings on the Point Light 2D