Dissolve yeast in the lukewarm water and set aside. Combine milk, salt, sugar and butter. Cool to lukewarm and add to the yeast mixture.
Beat eggs, add nutmeg and flavorings and stir into the milk and yeast mixture. Gradually work in 1 cup of flour, beating until smooth. Add more flour to make a very soft dough.
Turn dough onto a floured board and knead until smooth. Round up the dough and place in a greased bowl and let it rise until light, about 1 hour. Punch down and roll out on the board into a rectangle 8 × 10 inches.
Cut 1/3 of the ½ cup of butter into small chunks over one long side of the dough. Press edges together. Chill for 1 hour.
Roll again. Butter the center 1/3 of the rectangle this time. Fold over one side of the dough, then the other side, and pinch the edges firmly. This time there will be 3 thicknesses of dough. Chill for 1 hour.
Divide dough into 5 pieces. Roll each into a small rectangle. Combine the 2 tablespoons of sugar, the cinnamon and ground almonds and sprinkle the mixture over each piece of dough. Roll each as for jelly roll. Cut in 1-inch pieces. Place on lightly greased baking sheets.
Bake 30 to 35 minutes in a preheated 375° oven. Brush with a glaze of syrup or thin powdered-sugar frosting.