Preheat oven to 350 degrees. Grease cookie sheets.
In a large bowl, with a mixer, cream together butter and sugar until light and fluffy. Beat in eggs one at a time, then stir in vanilla and almond extracts, milk and oil. In another bowl, combine flour and baking powder, then stir into butter mixture until mixed well.
Roll dough into 1-inch balls. On a lightly floured surface, roll balls out into ropes about 5 inches long. Tie into loose knots and place cookies 1 inch apart on prepared cookie sheets.
Bake for 5 minutes on the bottom shelf and 5 minutes on the top shelf of preheated oven, until bottoms of cookies are golden brown. When cookies are cool, dip into icing.
To make icing: With a mixer, cream powdered sugar, butter, vanilla and almond extract together. Beat in milk one tablespoon at a a time, then add food coloring, if desired. Makes 4 dozen. Enjoy!