Heat oven to 350°F. Generously grease 10-inch angel food (tube cake) pan with shortening; lightly flour. In large bowl, beat 2 1/2 cups sugar and the butter until light and fluffy. Add vanilla; mix well. Beat in 1 egg at a time until well blended.
In small bowl, mix flour, baking powder and salt. Add flour mixture alternately with orange peel and milk, beating well after each addition. Pour batter into pan.
Bake 55 to 65 minutes or until toothpick inserted in center comes out clean. Cool 15 minutes. Invert cake onto serving plate. Cool completely, about 1 1/2 hours.
In medium saucepan, mix apricots, cherries, 1/2 cup sugar and the orange juice. Heat to boiling; simmer 10 to 15 minutes or until most of liquid is absorbed. Stir in brandy and chopped orange. Serve warm compote with cake and ice cream.