Combine gelatin and water in a small saucepan. Let stand 5 minutes. Cook over low heat till gelatin is dissolved. Set aside.
In a large mixing bowl, beat cream cheese, sugar, and almond extract. Add milk and beat till smooth. Stir in gelatin mixture. Chill till mixture is partially set (about 15 minutes). Meanwhile, chop 1 cup of peaches, reserving remaining peaches for garnish. Fold chopped peaches and Cool Whip into the gelatin mixture. Pour into a 5 cup mold. Chill for 4 hours or till firm. When ready to serve, unmold gelatin onto a serving plate and garnish with reserved peach slices. Serves: 8.
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