4
 \documentclass[a4paper]{article}
 \usepackage[usenames,dvipsnames]{color}
 \usepackage{yfonts}[1998/10/03]

  \begin{document}

 \frakfamily\Large\fraklines
 \textcolor{Green}{\yinipar{E}\textswab{text} \\}
 \end{document}

I am attaching an image along with this post, I am able to achieve the first image, however I am looking to achieve the second.

enter image description here

5

You could simply use \textinit:

\documentclass[a4paper]{article}
\usepackage[usenames,dvipsnames]{color}
\usepackage{yfonts}[1998/10/03] 
\begin{document}
\frakfamily\Large\fraklines
\textcolor{Green}{\textinit{E}\textswab{text} \\}
\end{document}

textinit example

7

A second the use of lettrine. If you don't want to have the initial hang into the margin (as in Gonzalo's answer) you can use

\documentclass[a4paper]{article}
\usepackage[dvipsnames]{xcolor}
\usepackage{yfonts}[1998/10/03]
\usepackage{lettrine}
\usepackage{lipsum} % for testing

\renewcommand\LettrineFont{\initfamily\color{Green}\tiny}

\begin{document}
\swabfamily\Large\fraklines
\lettrine[lines=1]{S}{ome} text
\lipsum*
\end{document}

result

This also shows one nicety of lettrine: you can easily define a global font for it by changing \LettrineFont appropriately. In this case, I change it to the initials font family from yfonts and select the color and size. The [lines=1] argument to \lettrine sets the layout so that only one line of text is indented with the initial (which gives the layout that you want). You can set this globally (so that you don't have to pass the argument every time) with \setcounter{DefaultLines}{1}.

Side note: You should use xcolor instead of color. And your \frakfamily is immediately overridden by \textswab. So I simply changed it to \swabfamily.

3

The lettrine package could be an option:

\documentclass[a4paper]{article}
\usepackage[usenames,dvipsnames]{color}
\usepackage{yfonts}[1998/10/03]
\usepackage{lettrine}

\usepackage{lipsum}
\begin{document}

\frakfamily\Large\fraklines
\frakfamily\Large\fraklines

\textcolor{Green}{\lettrine[lraise=2.5,loversize=-0.55]{\yinipar{E}}{\textswab{text}}}

\end{document}

enter image description here

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