01 - In a large mixing bowl, whisk together the flour, sugar, yeast, and salt until evenly distributed.
02 - In a small saucepan or microwave-safe container, combine the milk, water, and butter. Heat gently until the mixture is just warm to the touch (110°F), ensuring the butter has melted. Pour into the dry ingredients along with the egg.
03 - Using a stand mixer fitted with a dough hook or by hand, knead the mixture for 6 to 8 minutes until the dough becomes smooth, elastic, and slightly tacky to the touch.
04 - Transfer the dough to a lightly greased bowl, cover with a clean towel or plastic wrap, and place in a warm, draft-free area. Allow to rise until doubled in volume, approximately 1 hour.
05 - In a medium bowl, beat the softened cream cheese, sugar, and almond extract together until smooth and creamy. Fold in the chopped almonds until evenly incorporated.
06 - Gently punch down the risen dough to release air. On a lightly floured surface, roll the dough out into a rectangle measuring approximately 16 by 10 inches.
07 - Spread the cream cheese filling in an even layer across the entire surface of the dough. Starting from the long edge, roll the dough up tightly into a log. Using a sharp knife, slice into 12 equal pieces.
08 - Arrange the sliced rolls cut-side up in a greased 9x13 inch baking dish. Cover loosely and let rise in a warm spot for 30 minutes until puffy and nearly doubled.
09 - Preheat the oven to 350°F. Bake the rolls for 22 to 25 minutes until the tops are golden brown and the centers are cooked through. Remove from the oven and allow to cool slightly in the pan.
10 - Whisk together the powdered sugar, milk, and almond extract until a smooth, pourable glaze forms. Drizzle generously over the warm rolls and finish with a sprinkle of toasted sliced almonds. Serve and enjoy.