Using a serrated knife, cut pound cake into 1x1-inch chunks. Cut cake chunks into 1x1x1/2-inch pieces. Spread a small amount of jam between the of each square to create 3 layers mini cakes. Place stacked cakes on a wire rack set over waxed paper.
For icing, in a small bowl stir together powdered sugar, the 1 tablespoon milk, and almond extract. Stir in 2 to 3 teaspoons additional milk to make of thin glazing consistency. If desired, tint with food coloring.
Spoon icing over tops of cake squares. Sprinkle with decorative candies. Let stand until icing is set.