Heat a large saute pan or Dutch oven over medium heat and add the bacon. Cook the bacon until it is brown and crisp, about 7 minutes. Remove bacon to drain on paper towels.
Season the rabbit with salt and pepper. Heat the remaining bacon fat and sear the rabbit pieces until golden on all sides, turning often, about 56 minutes. Lift out the rabbit pieces and reserve. Add the onion to the pan and saute until the onions are soft and caramelized, about 57 minutes. Add the garlic, almonds, cinnamon, red pepper flakes and salt, and cook until the aromas are released, about 1 minute. Add the wine and reduce by half.
Add the stock, browned rabbit pieces, browned bacon and bay leaves. Cook, covered, until rabbit is fork tender, about 1 hour.
Carefully lift out the rabbit pieces and transfer to a serving platter. Add the sherry to the sauce along with enough butter to thicken the sauce, whisking until the butter is incorporated. Pour the sauce over the warm rabbit pieces and garnish with toasted sliced almonds.
c.1996, M.S. Milliken & S. Feniger, all rights reserved