Adjust rack so center of cake will be at center of oven. Preheat oven to 350ºF.

Generously grease and flour 10-inch tube pan with removable bottom.

Cream butter and 1 1/3 cup sugar in large bowl until very light and fluffy.

Beat in almond extract then egg yolks, one at a time.

Add flour and milk alternately in 3 additions, beginning and ending with flour and beating after each addition just until combined.

Beat egg whites in clean bowl with clean beaters until foamy.

Gradually add remaining 1/3 cup sugar, beating until soft peaks form.

Gently fold into batter.

Turn into prepared pan.

Evenly sprinkle almonds and vanilla milk chips over top of batter.

Bake 60-65 minutes or until toothpick inserted in center comes out clean.

Let stand 10 minutes.

Loosen cake from sides of pan with a small spatula or knife. Turn out onto cooling rack.

Cool before cutting.