Preheat oven to 350°F (175°C).

For the first part, cut 1/2 cup softened butter into 1 cup flour until crumbly.

Sprinkle water over the flour mixture and mix until it forms a moist ball.

Divide the dough in half.

On an ungreased baking sheet, pat each half into a strip approximately 12x3 inches, spacing the strips about 3 inches apart.

For the second part, heat 1/2 cup butter and 1 cup water in a saucepan to a rolling boil.

Reduce heat to the lowest setting and quickly stir in 2.5 teaspoons almond extract and 1 cup flour.

Stir vigorously over low heat until the mixture forms a ball, about 1 minute.

Remove the saucepan from heat.

Beat in 3 eggs, all at once, until the batter is smooth and glossy.

Divide the batter in half.

Spread the batter evenly over the strips of dough on the baking sheet.

Bake in the preheated oven for 60 minutes, or until the topping is crisp and golden brown.

While the danish is baking, prepare the sugar glaze: Mix 3 cups powdered sugar, 4 tablespoons softened butter, 1.5 teaspoons vanilla extract, 1.5 teaspoons almond extract, and 2-4 tablespoons warm water until smooth and of spreading consistency.

Once the danish is baked, let it cool slightly.

Frost the danish with the sugar glaze.

Sprinkle chopped walnuts or sliced almonds over the frosted danish.

To make individual puffs: pat dough into 3-inch circles.

Use a rounded teaspoon for each puff. Spread a rounded tablespoon of batter over each circle, extending it just beyond the edge of the circle. Bake 30 minutes and frost.