Cut a top plate, a down plate and a wall plate out of 2-by-4 stock for the length of the soffit, which typically runs across the entire top of the cabinets. Mark a spot to indicate the top of where your wall cabinets will be installed. Make a second mark higher than the first to allow space for your drywall, depending on whether it is 3/8, 1/2 or 5/8 inch thick.
Nail or screw the wall plate into place horizontally level above your second mark. Nail or screw the top plate across the ceiling or ceiling joists at a distance 13 to 14 inches out from the wall, so that you can access and finish the soffit corner without it being hidden by a cabinet typically 12 inches deep.
Measure the length needed for your down supports, which connect the top plate installed in the ceiling and a down plate to rest above the cabinet, to complete the frame. Cut and nail one down support to the down plate every 16 inches. Install two more down supports, one at each end of the frame. Clamp the resulting frame to the top plate or ask an assistant to hold it in place. Toenail the frame in place.
Measure and cut wall supports on 16-inch centers to connect the frame to the wall plate. Nail the wall supports in place.
Measure the front, sides and bottom of the frame and transfer the measurements to the drywall. Cut the drywall with a utility knife and screw it to the frame. Add corner bead to the corners, tape the corners and seams, spackle with joint compound and paint.