Beat butter and sugar in large bowl with electric mixer at medium speed until light and fluffy, scraping down side of bowl once. Beat in egg, milk, vanilla and almond extracts until well blended, scraping down side of bowl once.
Gradually add 1 1/2 cups flour. Beat at low speed until well blended, scraping down side of bowl occasionally. Stir in enough remaining flour with spoon to form stiff dough. Form dough into a disc; wrap in plastic wrap and refrigerate until firm, at least 30 minutes or overnight.
Preheat oven to 375 degrees. Cut dough into six equal pieces. Rewrap 3 dough pieces and return to refrigerator. With floured hands, shape each piece of dough into 12 inch long, 3/4-inch thick rope.
Place ropes 2 inches apart on ungreased cookie sheets or on parchment paper lined baking sheet. Make a length-wise 1/4 inch deep groove down center of each rope with handle of wooden spoon or finger. Note: Ropes will flatten to 1/2 inch thick strips.
Bake 12 minutes. Take strips out of oven; spoon 1 tablespoon jam along each groove. Return to oven, bake 5 to 7 minutes longer or until strips are light golden brown. Cool strips 15 minutes on cookie sheets.
Prepare Glaze: Place 1/2 cup powdered sugar, 1 tablespoon milk and 1 teaspoon almond extract in a small bowl; stir with spoon until smooth. Drizzle strips with glaze. Let stand 5 minutes to dry. Transfer strips to cutting board. Cut cookie strips at 45 degree angle into 1-inch slices. Remove cookies with spatula to wire racks; cool completely. Repeat with remaining dough.
Store tightly covered between sheets of waxed paper at room temperature.