Here's how it's used:
* To interrupt a line of thought: "I was going to say... but soft, what is this?"
* To draw attention to something: "But soft, what light through yonder window breaks?"
* To create a pause or suspense: "But soft, I hear a noise... "
The phrase is most commonly associated with William Shakespeare, who used it frequently in his plays, such as in *Romeo and Juliet* ("But, soft! what light through yonder window breaks?").
Although not common in modern speech, "but soft" still carries a sense of dramatic pause and intrigue.