Add first 8 ingredients to bread machine (with a capacity of at least 10 cups) according to manufacturer's directions. Select dough cycle. When cycle is complete, remove dough from machine. Punch down. Cover; let rest for 10 minutes. On a lightly floured surface, roll dough to a 12x10-inch rectangle. Spread jam on dough. Crumble almond paste into small pieces and sprinkle over dough. Roll up dough into a spiral, starting from a long side; seal seams. Slice into twelve 1-inch-thick slices. Place rolls, cut side down, 2 inches apart on greased baking sheets for individual rolls, or arrange in a greased 13x9x2-inch baking pan. Cover; let rise until nearly double (about 30 minutes).

Bake in a 350 degree F oven until golden brown, allowing 18 minutes for individual rolls or about 30 minutes for rolls in pan. Cool on a wire rack about 5 minutes; transfer to a serving platter. Drizzle with Powdered Sugar Icing. Serve warm. Makes 12 rolls.

In a medium mixing bowl stir together 1 cup sifted powdered sugar, 1 tablespoon milk, and 1/4 teaspoon vanilla. Stir in additional milk, 1/2 teaspoon at a time, until icing is of drizzling consistency.

For best results, use an almond paste made without syrup or liquid glucose.