01 - In a large bowl, combine all-purpose flour, granulated sugar, active dry yeast, and salt until evenly dispersed.
02 - In a small saucepan or microwave-safe bowl, heat whole milk, water, and unsalted butter until just warm to the touch. Do not allow to boil.
03 - Add warmed milk mixture and large egg to the dry ingredients. Mix until a shaggy dough forms.
04 - Knead by hand or with a stand mixer fitted with a dough hook for 6 to 8 minutes, until the dough is smooth and only slightly sticky.
05 - Transfer dough to a lightly greased bowl. Cover and let rise in a warm place until doubled in size, approximately 1 hour.
06 - In a medium bowl, beat cream cheese, granulated sugar, and almond extract until smooth. Fold in finely chopped almonds.
07 - Punch down the risen dough and roll out on a floured surface to a rectangle, about 16 by 10 inches.
08 - Spread cream cheese filling evenly over the dough. Roll up tightly from the long edge and slice into 12 even pieces.
09 - Place rolls cut side up in a greased 9 by 13 inch baking dish. Cover and let rise for 30 minutes.
10 - Preheat the oven to 350°F.
11 - Bake for 22 to 25 minutes, or until the rolls are golden brown on top. Allow to cool slightly in the dish.
12 - Whisk powdered sugar, milk, and almond extract in a small bowl until completely smooth.
13 - Drizzle warm rolls with glaze and sprinkle with toasted sliced almonds before serving.