Cream butter with sugar and egg until light and fluffy. Add egg and almond extract and beat until smooth. Sift in flour, baking powder and salt. Add ground almonds. Stir well by hand.
Shape mixture into small balls and place well apart on lightly greased cookie sheet. Flatten slightly and press an almond on top of each cookie. Bake in preheated 350 °F oven for 12 - 15 minutes or until golden in color.