Heat milk in a saucepan over medium-low heat; add butter and water. Stir mixture until butter melts, about 5 minutes. Remove milk mixture from heat and cool to lukewarm, 5 to 10 minutes. Pour milk mixture into a bowl of a stand mixer.
Stir flour, honey, eggs, yeast, salt, vanilla extract, and almond extract into milk mixture; beat using the paddle attachment of the mixer until well blended, about 3 minutes. Cover bowl with a damp towel and place in a warm spot of the kitchen until doubled in size, about 1 hour.
Preheat oven to 350 degrees F (175 degrees C).
Punch down dough and transfer to a 9- or 10-inch tube pan.
Bake in the preheated oven until lightly browned, about 50 minutes.