01 - In a large mixing bowl, whisk together all-purpose flour, granulated sugar, active dry yeast, and salt until well blended.
02 - Warm whole milk, water, and unsalted butter using a small saucepan or microwave; ensure the mixture is warm but not hot. Add this to the dry mixture along with the egg.
03 - Knead the dough by hand or with a stand mixer fitted with a dough hook for about 6 to 8 minutes, until smooth and slightly tacky.
04 - Lightly grease a bowl, place the dough inside, cover, and let it rise in a warm location until doubled in volume, about 1 hour.
05 - In a medium bowl, beat cream cheese with granulated sugar and almond extract until smooth. Stir in finely chopped almonds until evenly incorporated.
06 - Deflate the dough, then roll it on a lightly floured surface into a 16 by 10-inch rectangle.
07 - Spread the cream cheese almond filling evenly over the surface of the dough.
08 - Starting from one long edge, roll the dough tightly into a log and slice evenly into 12 pieces.
09 - Arrange the rolls cut-side up in a greased 9 by 13-inch baking dish. Cover and let rise for 30 minutes in a warm area.
10 - Preheat oven to 350°F. Bake rolls for 22 to 25 minutes until golden brown. Cool slightly before glazing.
11 - Whisk powdered sugar, milk, and almond extract until smooth. Drizzle glaze over the warm rolls and sprinkle with toasted sliced almonds.