Combine butter, 2/3 cup sugar, egg, almond extract and salt in bowl. Beat at medium speed, scraping bowl often, until creamy. Add flour; beat at low speed, scraping bowl often, until well mixed.
Divide dough in half; wrap in plastic food wrap. Refrigerate 1-2 hours or until firm.
Heat oven to 350°F.
Roll out dough on well-floured surface, one-half at a time (keeping remaining dough refrigerated), to 1/4-inch thickness. Cut with 2-inch round cookie cutter. Place 2 inches apart onto ungreased cookie sheets. Press 3/4 to 1-inch cookie cutter into center of each cookie, cutting only halfway through dough.
Bake 9-11 minutes or until edges are very lightly browned. Let stand 1 minute on cookie sheets; remove to cooling rack. Cool completely.
Whisk water and pasteurized dried egg whites together in bowl, according to dried egg white package directions. Use small brush to coat areas to be sugared and outside edge of cookie with egg white mixture. Hold cookie at an angle; sprinkle decorator sugar over areas brushed with egg white mixture. Shake excess sugar off cookie.