Combine dried blueberries and lemon peel in a small bowl; set aside.
Combine 3/4 cup flour, undissolved yeast, cardamom and salt in a large mixing bowl.
Heat milk, sugar and butter to very warm (120° to 130°F, butter may not melt completely). Add to dry ingredients; beat just until moistened. Add egg and lemon extract; beat until smooth. Stir in enough remaining flour to make a soft dough.
Turn dough out onto a floured surface. Knead until smooth and elastic, about 6 to 8 minutes. Knead in blueberries and lemon peel. Cover and let dough rest for 10 minutes.
Divide dough into thirds. Roll each portion into a 16-inch long rope. Place ropes on a greased baking sheet. Braid the three ropes together, tucking the ends under. Cover and let rise in a warm, draft-free place 45 to 60 minutes or until doubled. Lightly brush with 2 teaspoons milk and sprinkle with almonds.
Bake at 375°F for 20 to 25 minutes or until golden brown. Remove loaf to wire rack to cool. If desired, combine glaze ingredients; drizzle over bread.