Preheat oven to 350.

Grease 8-inch square pan. In a small saucepan, combine almonds, 1/3 cup sugar, 1/2 cup butter, honey and 1 tablespoon milk. Cook over medium heat until sugar melts; bring to a boil and boil for 5 minutes. Remove from heat and set aside.

Cream 1/2 cup butter and 2/3 cup sugar until light and fluffy. Add eggs, almond extract, and milk. Add 1 cup of flour, the salt and baking powder. Beat until well blended. Stir in, by hand, the remaining 3/4 cup flour. Spread batter in greased pan. Spoon almond mixture over batter and spread evenly. Bake for 35-40 minutes or until toothpick inserted in center comes out clean.