Position knife blade in processor bowl; add sugar, water, and 1/2 cup almonds, and cover. Process 30 seconds or until mixture forms a paste. Add remaining almonds and process 1 minute or until mixture is smooth. With processor running, pour almond flavoring through food chute; process 10 seconds or until well mixed.
Place egg whites (at room temperature) in a medium mixing bowl; beat until frothy. Gradually add powdered sugar, beating well to form a soft paste.
Combine egg white mixture and almond mixture, mixing well to form a stiff dough. Refrigerate overnight.
Shape marzipan into assorted miniature fruits and vegetables. Paint with food coloring.