Preheat oven to 350°F Grate 1/4 tsp peel from lemon and squeeze 2 tsp juice. Set juice aside.
In a saucepan, combine 1 C cranberries, 1/4 C granulated sugar, grated lemon peel, and cinnamon. Cook on medium-low 10 minutes, or until some cranberries burst, stirring frequently. Cool completely. Stir in remaining cranberries.
Grease and dust with flour a 12-cup Bundt pan. In a large bowl, whisk together flour, baking powder, baking soda, and salt.
Cream butter and cheese until fluffy and smooth with mixer. Gradually add 2 C of sugar, 1/2 C at a time. Beat 1 minute longer. Add eggs, 1 at a time, beating after each addition. Beat in 1 tbsp vanilla extract and 1 tsp almond extract. Reduce mixture speed to low and add flour mixture. Beat until just combined.
Spoon 3/4 cake batter into Bundt pan. Top with cranberry mixture in an even layer. Top all with rest of cake batter. Bake 55 min to 1 hour 10 minutes, or until toothpick inserted in center comes out clean. Cool in pan 10 minutes. Invert onto rack; remove pan. Cool completely.
In medium bowl, whisk together confectioners' sugar, reserved lemon juice, water, and remaining 1/4 tsp almond extract until smooth; drizzle over cake. Garnish with almonds.