In a bowl, combine flour, salt, sugar, vanilla extract, lemon extract and almond essence.
Using a pastry blender, cut the butter into the flour until it resembles small peas.
Add egg and mix well for 2-3 minutes.
Add milk a little at a time.
As soon as it starts to come together (after about 4 tablespoons of the milk), knead it by hand and add the additional milk, if necessary.
Wrap in plastic wrap and chill for 30 minutes.
Preheat oven to 350 F.
Line 2 cookie sheets with parchment paper or spray with non stick spray.
On a lightly floured surface, roll out dough to about ¼” thick.
Using a large and a small cookie cutter of the same shape, cut out cookies.
Transfer cookies to cookie sheets.
Keep on re rolling the excess dough until all of the dough has been utilized.
In a small bowl, beat the egg with 1 tablespoon water.
Brush the cookies with the egg wash.
Sprinkle sugar on top of the cookies.
Distribute sliced almonds on top of the cookie cutouts.
Bake for 15-20 minutes until cookies feel set.
Let cool completely before removing from tray.
Tie with ribbons and hang on the Christmas tree.