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To the bowl of a food processor, add the almond flour and powdered sugar. If making in a mixer or by hand, sift almond flour and powdered sugar well.
Pulse briefly until combined.
Add almond extract, rose water, and 1 Tablespoon of water. Process until mixture comes together in a ball. If needed, add remaining water 1 teaspoon at a time to pull mixture together.
Dump almond paste out onto parchment paper. Knead 4-5 times.If almond paste is very sticky, sprinkle with a bit of powdered sugar so your hands don't stick.
Shape into a cylinder.
Wrap with parchment paper or plastic wrap and chill in the refrigerator for at least one hour*.*Chilling the almond paste helps it firm up and makes handling easier. If using the almond paste as a spread, you can skip the chilling step.
Store well wrapped in an airtight container at room temperature 2 days, in the refrigerator for up to 2 weeks, in the freezer up to 3 months. If frozen, defrost in refrigerator overnight prior to use.