Preheat oven to 350. From lemon, grate 1/4 teaspoon peel and squeeze 2 teaspoons juice; set aside seperately.
In 2 quart saucepan, combine 1 cup cranberries, 1/4 cup sugar, grated lemon peel, and cinnamon, cook on medium-low 10 minutes or until some cranberries burst, stirring frequently. Cool completely. Stir in remaining cup cranberries. (Can be prepared up to 3 days ahead; cover and refrigerate.)
Meanwhile, grease 12 cup Bundt pan, dust lightly with flour. In large bowl, Whisk together flour, baking powder, baking soda and salt.
With mixer on medium-high speed, beat butter and cream cheese until fluffy and smooth. With mixer running, add 2 cups granulated sugar, 1/2 cup at a time. Beat 1 minute longer. Add eggs 1 at a time, beating between additions, scraping bowl occasioally. Beat in 1 tablespoon vanilla extract and 1 teaspoon almond extract. Reduce mixer speed to low. Add flour mixture. beat until just combined.
Spoon three quarters of batter into prepared pan. Spread cooled cranberry mixture in even layer over batter. Top with remaining batter. Bake 55 minutes to 1 hour 10 minutes or until toothpick inserted comes out clean. Cool in pan on wire rack 10 minutes. Invert onto rack' remove pan. Cool completely. Cake can be wrapped tightly in plastic wrap and kept at room temperature up to 1 day.
To serve, in medium bowl, whisk together confectioners sugar, reserved lemon juice, water, and remaining 1/4 almond extract and 1/4 vanilla extract until smooth. Drizzle over cake. Garnish with almonds.