In a medium bowl, cream together the butter and sugar. Stir in the egg and vanilla.
Combine the flour, baking powder and salt; stir into the creamed mixture.
Divide dough equally into three small bowls. Add almond extract and red food coloring to one portion; stir until thoroughly mixed. Mix chocolate into second bowl and walnuts into third bowl.
Line a 9x5" loaf pan with waxed paper, and spread almond dough evenly in the bottom of pan. Spread the walnut dough evenly over the almond layer and top with the chocolate layer.
Cover with waxed paper and refrigerate at least 4 hours; I usually do it overnight.
Preheat oven to 350 degrees. Turn out chilled dough by inverting pan; peel off waxed paper.
With sharp knife, cut dough lengthwise in half. Slice each half of dough crosswise into 1/4 inch slices. Place slices on cookie sheet one inch apart. Bake 10-12 minutes, until light brown. Remove to wire racks to cool.
Sometimes after I remove the waxed paper from the loaf pan, I press each side into red colored sugar or chocolate sprinkles. Makes 5 dozen.