If you followed Part 1, you should now have a model for an O'Neal Cylinder. Next you will need to create a material that will change gradually as the height goes from sea level to the mountain peaks.
The effect you want is a gradual transition from blue ocean to turquoise shallows, a defined white or brown shoreline, then a gradual transition from brown lowlands to green peaks.
To accomplish this in Unreal you will make heavy use of the HeightLerp map blend node. You start by defining your ocean color, then start adding layers.
The the heightlerp takes two colors, then takes a heightmap and blends it using the pixel colors in the heightmap. The transition phase value tells where the first color stops and the new color begins. If black is 0 and white is 1, when the transition value is set to .6 the the blend between the ocean and the shallows occurs 60 percent between the lowest point and the highest point.
You take the result of the blend between the ocean and shallows, then bland it with the beach. Then you blend the result of that heightlerp with trees. The best comparison would be taking a piece of pottery and dipping it into different bowls of glaze, the first time you dip the whole thing in blue, then dip it halfway in red. You end up with the pigment reaching all the pottery but the red only coming up to half of the height of the pottery.
To give it some additional texture I blended the heightmap with some normal textures for mountains.
I combined this heightmap with an atmospheric shader found here
The result is this effect.
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