Heat milk and butter until very warm (120-130 degrees F.). Mix yeast, salt, sugar, and 1 cup flour. Slowly beat into warm milk. Beat for 2 minutes. Add eggs and 1 cup of flour. Beat for an additional 2 minutes. Add enough flour to form a soft dough. Knead until smooth and elastic, about 5 minutes. Place dough in a greased bowl. Let rise in a warm place until doubled in bulk, about 1 hour. Punch dough down and let rise again until doubled. (1 hour more). Divide dough in half. Shape pretzel as follows: Roll dough into a rope about 30 inches long and 1 1/2 inches in diameter. Cross the ends leaving a large loop in the center. Flip loop back onto crossed ends to form a pretzel. Repeat with remaining dough. Place pretzels on greased baking sheets. Let rise 15 minutes more. Bake at 375 degrees F for 25 to 30 minutes or until golden brown. Cool on wire racks. Mix confectioners' sugar, water and vanilla to form a thin icing. Spread icing on pretzels and sprinkle with chopped almonds.
