In a large saucepan, bring butter and water just to a boil. Immediately remove from heat; stir in flour, sugar, eggs, sour cream, applesauce, salt, baking powder, extract and baking soda until smooth.
Pour into a 15X10X1 inch baking pan coated with nonstick spray. Bake at 375 for 15-20 minutes or until golden brown and a toothpick comes out clean. Cool on a wire rack for 20 minutes.
For frosting, in a small mixing bowl, beat butter and extract until smooth. Gradually beat in powdered sugar. Add milk; beat until smooth. Spread over warm cake; sprinkle with almonds. Cool completely.