01 - In a large mixing bowl, whisk together the flour, sugar, yeast, and salt until evenly distributed.
02 - Combine the milk, water, and butter in a small saucepan over low heat or microwave in short intervals until the mixture is just warm to the touch, not hot. Pour into the dry ingredients along with the egg.
03 - Knead by hand on a lightly floured surface or use a stand mixer fitted with a dough hook for 6 to 8 minutes until the dough is smooth, elastic, and slightly tacky.
04 - Transfer the dough to a lightly greased bowl, cover with a clean kitchen towel or plastic wrap, and let it rise in a warm, draft-free spot until doubled in size, approximately 1 hour.
05 - While the dough rises, beat the softened cream cheese, sugar, and almond extract in a medium bowl until smooth and creamy. Fold in the chopped almonds until evenly incorporated.
06 - Punch down the risen dough and turn it out onto a floured surface. Roll it into a rectangle approximately 16 by 10 inches. Spread the cream cheese filling in an even layer over the entire surface of the dough.
07 - Starting from the long side, roll the dough up tightly into a log. Using a sharp knife or unflavored dental floss, slice the log into 12 equal pieces.
08 - Arrange the rolls cut-side up in a greased 9 by 13 inch baking dish. Cover loosely and let them rise for 30 minutes until puffed.
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 set. Remove from the oven and let cool slightly.
10 - Whisk together the powdered sugar, milk, and almond extract until a smooth, pourable glaze forms. Drizzle over the warm rolls and finish with a sprinkle of toasted sliced almonds. Serve warm or at room temperature.