Chop the almonds coarsely. Liquidize in a blender with 2 cups of hot milk.
In a large saucepan add the remaining milk, water, sugar, butter, cinnamon, salt, and almond extract. Place on medium heat. Add processed almond puree and mix well. Sprinkle in rice and bring to a boil. Reduce heat, cover and simmer for 30 minutes, adding more milk if necessary to become thick.
Remove the cinnamon stick and spoon rice pudding into individual serving bowls. Sprinkle with honey and toasted almonds. Serve immediately.