1. In a large mixing bowl beat the butter and cream cheese with an electric mixer on medium to high speed for 30 seconds. Beat in the 1 teaspoon almond extract until combined. Beat in the flour until dough comes together. Divide dough in half. Cover and chill dough about 1 1/2 hours or until easy to handle. 

2. Preheat oven to 375°F. Line cookie sheets with parchment paper; set aside. On a lightly floured surface roll half the dough at a time to 1/8 inch thick. Using a scalloped-edge 3-inch round cookie cutter, cut out dough. Place rounds 1 inch apart on prepared cookie sheets. 

3.  Spoon 1/2 teaspoon cherry preserves onto one side of each round; spread to 1/4 inch from the edge. Fold dough rounds in half, enclosing preserves; press edges with the tines of a fork to seal. Whisk egg whites until frothy; brush cookies lightly with egg whites. Bake for 12 to 15 minutes or until cookies are light brown. Transfer cookies to a wire rack and let cool. 

4. In a small bowl stir together powdered sugar, the 1/4 teaspoon almond extract, and enough of the water to make an icing of drizzling consistency. Drizzle cookies with icing. Sprinkle with almonds. Let stand until icing is set.