Partially. The text is inserted, but the warning is still generated.
I found a discussion that indicated the text needed to be preceded with 'E', as such:
insert into EscapeTest (text) values (E'This is the first part \n And this is the second');
This suppressed the warning, but the text was still not being returned correctly. When I added the additional slash as Michael suggested, it worked.
As such:
insert into EscapeTest (text) values (E'This is the first part \\n And this is the second');