We put forward a dissipative preparation scheme for strongly correlated photon states. Our approach is based on a two-photon loss mechanism that is realised via a single four-level atom inside a bimodal optical cavity. Each elementary two-photon emission event removes one photon out of each of the two modes. The dark states of this loss mechanism are given by NOON states and arbitrary superpositions thereof. We find that the steady state of the two cavity modes exhibits entanglement and for certain parameters, a mixture of two coherent entangled states is produced. We discuss how the quantum correlations in the cavity modes and the output fields can be measured.