Beat sugar, butter and extract in large bowl until light and creamy, about 3 minutes. On low speed, gradually beat in flour until dough forms. Cover; chill at least 1 hour.
Heat oven to 350 degrees. Shape dough into 1-inch balls. Place 2 inches apart on ungreased baking sheets. With thumb, make indentations in center of each. Fill each indentation with 1/4 tsp. jam.
Bake in 350 degree oven 14 to 18 minutes, until lightly browned. Cool on rack.
Whisk together sugar, almond extract and water in small bowl until smooth and good drizzling consistency. Drizzle over cookies. Makes about 3 dozen cookies