Preheat the oven to 350°F.
In a medium-sized bowl, cream together the butter and sugar until light and fluffy. Stir in the hazelnuts, vanilla extract, and almond extract. Mix in the flour to form a stiff dough. Cover and chill in the refrigerator for at least 1 hour, or overnight.
On a lightly floured work surface, roll the dough into a 1/4-inch thick rectangle, and cut it into 2-inch rounds, gathering the scraps and re-rolling the dough as necessary. Place the rounds on a lightly greased or parchment-lined baking sheet.
Bake the cookies for 10 to 12 minutes, or until they're lightly browned. Transfer the cookies to a wire rack to cool.
In a small bowl, beat together the confectioners' sugar, butter, and raspberry extract. Stir in the hot water, a little at a time, until the mixture is of a good spreading consistency. Spread the icing onto the cooled cookies.