Beat butter at medium speed with an electric mixer until creamy; gradually add brown sugar, beating well. Add egg, anise extract, and almond extract, beating well.
Combine flour and next 8 ingredients; stir well. Gradually add to butter mixture, beating at low speed until blended. Stir in chopped almonds.
Divide dough in half. Shape 1 portion into a ball; knead 3 or 4 times until smooth. Roll dough into a 9-inch square on a lightly greased baking sheet. Cut dough into 36 (1 1⁄2-inch) squares. Press a whole almond into center of each square. Repeat procedure with remaining dough.
Bake at 325° for 25 minutes. Cool slightly on baking sheet, and sprinkle with sugar while warm; remove to wire racks to cool completely. Break cookies apart, and store in airtight containers.