Place 1 cup flour in a medium mixing bowl; cut in 1/2 cup butter with a pastry blender until mixture resembles coarse meal. Sprinkle 2 tablespoons water evenly over surface; stir with a fork until dry ingredients are moistened, shape dough into a ball. Divide ball in half, placing halves on an ungreased baking sheet. Pat each half into a 12- x 3-inch strip, leaving 3 inches between strips.
Combine 1 cup water and melted butter in a medium saucepan; bring to a boil. Add 1 teaspoon almond extract and remaining flour, all at once, stirring vigorously over low heat until mixture leaves sides of pan and forms a smooth ball. Remove from heat, and cool slightly.
Add eggs; beat until batter is smooth. Spread batter evenly over each pastry strip. Bake at 350° for 1 hour. Remove from oven, and keep warm.
Combine powdered sugar, 2 tablespoons butter, remaining almond extract, and 1 1/2 tablespoons warm water in a medium mixing bowl, beating well. Spread over tops of cakes; sprinkle with almonds. Slice and serve warm.