In a large bowl, cream the butter, shortening and sugar until light and fluffy. Beat in the egg, milk and vanilla. In another bowl, combine the flour, baking powder and salt; gradually add to creamed mixture and mix well. Divide dough in half. Cover and refrigerate for 3 hours or until easy to handle.
In a small bowl, beat cream cheese, sugar and extract until smooth. Fold in cherries. On a floured surface, roll each portion of dough into a 10-in. square. With a sharp knife or pastry wheel, cut into 2-1/2-in. squares. Place 2 in. apart on ungreased baking sheets. Make 1-in. cuts from each corner toward the center of the dough.
Drop teaspoonfuls of filling in the center of each square; sprinkle with almonds. Fold alternating points to the center to form a windmill; moisten points with water and pinch gently at center to seal. Bake at 350° for 8-10 minutes or until set. Cool on wire racks.
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