Combine 1 tablespoon coffee granules and 1 tablespoon water in a small bowl; stir well, and set aside.
Prepare angel food cake batter according to package directions. Fold in coffee mixture and extracts. Spoon batter into an ungreased 10-inch tube pan, spreading evenly. Break large air pockets by cutting through batter with a knife. Bake at 375° for 30 minutes or until cake springs back when lightly touched. Invert pan, and let cool for 40 minutes. Loosen cake from sides of pan, using a narrow metal spatula. Invert cake onto a serving plate; set aside.
Combine 2 tablespoons coffee granules and 1 tablespoon water in a small bowl; stir well, and set aside.
Cream margarine at high speed of a mixer. Add coffee mixture; beat well. Gradually add powdered sugar, beating at medium speed until well-blended. Add milk; beat well. Spread frosting over top and sides of cake. Store loosely covered in refrigerator.