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Preheat oven to 350 degrees F (175 degrees C).
In a medium bowl, cream together butter and white sugar until smooth. Mix in 1/2 teaspoon almond extract. Mix in flour until dough comes together. Roll dough into 1 1/2 inch balls, and place on ungreased cookie sheets. Make a small hole in the center of each ball, using your thumb and finger, and fill the hole with preserves.
Bake for 14 to 18 minutes in preheated oven, or until lightly browned. Let cool 1 minute on the cookie sheet.
In a medium bowl, mix together the confectioners' sugar, 3/4 teaspoon almond extract, and milk until smooth. Drizzle lightly over warm cookies.