1Heat oven to 375ºF. In large bowl, beat flour, butter, 1/3 cup powdered sugar, 2 tablespoons milk and the vanilla with electric mixer on medium speed, or mix with spoon. Cut almond paste into 1/2-inch slices; cut each slice into fourths.
2Shape 1-inch ball of dough around each piece of almond paste. Gently roll to form ball. Place about 1 inch apart on ungreased cookie sheet.
3Bake cookies 10 to 12 minutes or until set and bottom is golden brown. Remove from cookie sheet to wire rack. Cool completely, about 30 minutes.
4In small bowl, mix all Almond Frosting ingredients until smooth. Dip tops of cookies into frosting. Sprinkle with edible glitter.