Preheat your oven to 350°F (175°C). Grease and flour a 9x13-inch pan to prevent sticking.
Cream the butter and sugar: In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.
Add eggs and extracts: Beat in the eggs one at a time, then stir in the vanilla and almond extracts.
Mix dry ingredients: In another bowl, combine the flour, baking powder, and salt.
Combine mixtures: Gradually add the dry ingredients to the wet mixture, alternating with the milk. Mix until just combined. Gently fold in the chopped cherries.
Bake the cake: Pour the batter into the prepared pan and spread it evenly. Bake for 30-35 minutes, or until a toothpick inserted in the center comes out clean. Allow the cake to cool completely.
Prepare the frosting: In a mixing bowl, beat the softened cream cheese and butter together until smooth. Gradually add the powdered sugar, then stir in the cherry preserves and vanilla extract. Mix until well combined.
Frost the cake: Once the cake is completely cool, spread the frosting evenly over the top. Store in the refrigerator until ready to serve.