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Preheat oven to 325°F. Cream butter until smooth. Continue mixing, slowly adding sugar, and beat until light and fluffy. Stir together water, baking powder and baking soda, then add to the butter mixture. Beat in the egg and the almond extract. Fold in the flour and sliced almonds.
Refrigerate dough for about an hour, until firm. Roll the dough into two 1-inch logs. Slice leach log into ½ -inch pieces. Space cookies a couple of inches apart and press one whole almond into the middle. Set on parchment-lined baking sheet. Brush cookies with beaten egg. Bake 10 minutes or until golden brown.
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