Heat oven to 350 degrees F. Place 1 1/2 cups flour in large bowl; cut in 3/4 cup butter until mixture resembles coarse crumbs. Stir in 3 tablespoons water with fork until flour mixture is just moistened. Press dough into a ball. Pat dough into 10-inch circle onto ungreased baking sheet. Spread preserves to within 1/2 inch of edge. Set aside.
Combine 1 1/4 cups water and 1/2 cup butter in 2-quart saucepan. Cook over medium heat until mixture comes to a boil and butter is melted (careful milk does not overflow). Remove from heat; stir in 1 cup flour, almond meal, sugar and 1 teaspoon almond extract. Reduce heat to low. Cook, stirring constantly, until mixture forms a ball (about 1 minute). Remove from heat. Add eggs, one at a time, beating with wire whisk or wooden spoon until smooth and glossy.
Spread egg mixture over pastry and preserves. Bake for 50 to 55 minutes or until surface is crisp and golden. Cool completely (topping rises during baking and shrinks during cooling, forming custard-like layer).
Stir powdered sugar, 2 tablespoons butter and 1/2 teaspoon almond extract in small bowl until well mixed. Add enough milk or cream for desired glazing consistency. Drizzle glaze over puff; sprinkle with sliced, toasted almonds.