In a large mixing bowl, combine the flour, granulated sugar, and salt. In a separate bowl, dissolve the yeast in the warmed milk and let it sit for about 5 minutes until frothy.

Add the melted butter, egg, and vanilla extract to the yeast mixture, then pour this into the dry ingredients. Mix until a dough forms.

Knead the dough on a floured surface for about 5-7 minutes until smooth and elastic. Place the dough in a greased bowl, cover with a clean towel, and let it rise in a warm place for about 1 hour or until doubled in size.

Preheat your oven to 375°F. Once the dough has risen, punch it down and roll it out into a rectangle about 1/4 inch thick.

Spread the almond paste evenly over the dough, leaving a small border around the edges.

Cut slits along the sides of the rectangle, about 1 inch apart, making sure not to cut all the way through.

Starting from one end, fold the slits over the filling, alternating sides to create a braid.

Transfer the braided pastry to a baking sheet lined with parchment paper. Beat the additional egg and brush it over the top of the pastry. Sprinkle sliced almonds on top.

Bake for 20-25 minutes or until golden brown.

In a small bowl, mix the powdered sugar with 1 tablespoon of milk to create a glaze. Drizzle over the warm pastry before serving.