COMBINE evaporated milk and sugar in small, heavy-duty saucepan. Bring to a full rolling boil over medium-low heat, stirring constantly. Boil, stirring constantly, for 3 minutes. Remove from heat.
STIR in morsels. Stir vigorously until mixture is smooth. Stir in almond extract. Refrigerate for 1 1/2 to 2 hours. Shape into 1-inch balls; roll in nuts. Cover; refrigerate until ready to serve.