Combine 1 cup flour, sugar, undissolved yeast, salt, and lemon peel in a large mixer bowl. Heat water, milk, and butter until very warm (120° to 130°F). Gradually add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add egg, lemon juice, and 1 cup flour. Beat 2 minutes at high speed. Stir in remaining dough to make a stiff batter. Cover; let rest 10 minutes.
Evenly spread half the dough in a greased 9-inch springform pan. Carefully spread jam over batter. Spoon remaining dough over jam; spread carefully to cover jam layer. Cover; let rise in warm, draft-free place until doubled in size, about 30 to 45 minutes.
Combine flour and sugar in medium bowl. With pastry blender or two knives, cut in butter until mixture resembles coarse crumbs. Stir in slivered almonds and almond extract.Sprinkle streusel evenly over coffee cake.
Bake in preheated 375°F oven for 50 to 55 minutes or until done. Remove from pan; cool on wire rack.