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.
Starting at Step 2 and using a bread maker, pour the lukewarm liquids into the bread maker. Then put all dry ingredients on top leaving an indentation for the yeast. Pour the yeast into the indentation and set the bread maker to the dough cycle. When the cycle finishes, including rising, put into a 9- or 10-inch tube pan and bake at 350 degrees F (177 degrees C) for 50 minutes. The majority of the prep time is the time for rising. If you're doing the bread maker version there's about five minutes of prep time, an hour of dough cycle, and 50 minutes of cooking time.
If you don't have a stand mixer, you can mix the dough with floured hands or a wooden spoon until well blended.