Cream butter and sugar. Add eggs, one at a time, beating well after each addition. Add the orange juice, water, and almond extract; mix well. In another bowl, combine the flour, baking powder and salt; add to creamed mixture. Beat for 2 minutes.
Pour into greased 8-in square baking dish. Bake at 350 degrees for 30-35 minutes or until toothpick inserted near center comes out clean. Remove to wire rack to cool.
For the frosting: Combine powdered sugar, butter and enough orange juice just to achieve spreading consistency. May tint frosting with orange food coloring and add white squiggles on top if desired. Frost cake while still slightly warm.