Preheat oven to 350°F. Line cookie sheet with parchment paper. Place 1¼ cups almonds in food processor. Pulse until almonds form small pieces. Remove from processor and set in a shallow bowl or pie plate; set aside. Place egg whites into a bowl.
Place remaining 1 cup almonds and ¼ cup flour in the bowl of a food processor. Process until nuts are finely chopped. Add remaining 1¾ cups flour, sugar, baking powder and salt. Process until evenly mixed. Add butter and pulse until butter had incorporated. Add egg yolks and almond extract and process until dough comes together.
Form 1-inch balls of dough (dough may be crumbly but will come together if you press it in your hand). Coat dough with egg whites then roll in reserved chopped almonds. Place on baking sheet 2 inches apart. Bake 15 min and remove from oven. Press into center with end of wooden spoon, fill with ¼ tsp. jelly. Return to oven for 5 min. Let cook 5 minutes on cookie sheet before removing to a wire rack using a spatula.