In medium bowl, combine 1/3 cup sugar, cream cheese and almond extract; mix well. Stir in coconut. Set aside.
In large bowl, combine 1 cup sugar, margarine, cherry liquid and egg; beat until light and fluffy. Lightly spoon flour into measuring cup; level off. Add flour and all remaining cookie ingredients; mix well.
Shape dough into rope about 18 inches long; place lengthwise on 24-inch long sheet of waxed paper. Top with another sheet of waxed paper. Roll out dough to 20x10-inch rectangle. Peel off top sheet of paper.
Spread dough with cream cheese mixture; sprinkle with cherries. Starting with 20-inch side and using paper to lift dough, roll up dough tightly, jelly-roll fashion. Press edges to seal. Cut roll in half to form two 10-inch long rolls. Wrap each roll in waxed paper or plastic wrap; refrigerate at least 4 hours or until firm.
Heat oven to 375°F. Spray cookie sheets with nonstick cooking spray. Cut dough into 1/4-inch slices. Place slices 2 inches apart on sprayed cookie sheets.
Bake at 375°F. for 7 to 10 minutes or until set. Cool 2 minutes. Remove from cookie sheets. Cool 10 minutes or until completely cooled. Store in refrigerator.