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In a large bowl, cream together butter and sugar for 3-4 minutes until light, fluffy, and creamy. Add almond or vanilla extract.
Fold in flour and mix just until combined. The dough will be crumbly, keep mixing until it begins to come together. You may add 1 teaspoon of milk or water to help it come together. Press the dough into a ball and tightly cover with plastic wrap to chill for 1 hour.
Preheat oven to 350 degrees. When ready to bake, shape the dough into small balls, making sure the balls are nice and smooth. Line light-colored baking sheets with parchment paper.
Place the cookie dough balls onto the baking sheets and make an indention in each one with your thumb. The dough may crack slightly when you press your thumb into it so just smooth it out with your fingers. Fill with about ½ teaspoon of jam, depending on the size of your cookie dough ball.
Bake for 10-14 minutes, or until very lightly browned on the edges. If you want a softer shortbread thumbprint cookie, bake it for only 10 minutes. If you want a crisper shortbread cookie, bake them for 12-14 minutes. DO NOT OVERBAKE.
Allow cookies to cool on the baking sheet for 5 minutes before transferring them to a cooling rack to cool. Make the glaze by whisking the ingredients together. Drizzle over cooled cookies.