Heat oven to 350°F. Grease 48 miniature muffin cups with shortening; lightly flour. In large bowl, break up cookie dough. With hands, knead in almond paste and cherries.
Divide dough into 48 pieces. Shape each piece into ball; place in muffin cup. With thumb, make indentation in center of each.
Bake 6 to 8 minutes or until edges are golden brown. Cool in pan on cooling rack 5 minutes. Run knife around edge of cookie to loosen; cool 1 to 2 minutes longer. Remove from muffin cups; place on cooling rack to cool.
Spoon 1/2 teaspoon preserves into each cooled cup.
In small bowl, mix powdered sugar, almond extract and enough milk for desired drizzling consistency; blend until smooth. Drizzle over cookies; let stand until set, about 30 minutes. Sprinkle with powdered sugar.