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1. Add the first 9 ingredients to the bread machine pan according to the manufacturer's directions. Select the dough cycle. When cycle is complete, remove dough from machine. Punch down. Cover and let rest for 10 minutes.
2. Meanwhile, for filling, in a bowl combine the 1/2 cup sugar, 1 tablespoon bread flour, and 1 teaspoon cinnamon. With a pastry blender, cut in 3 tablespoons margarine or butter until crumbly. Set aside.
3. Divide the dough in half. On a lightly floured surface, roll 1 half into a 12x6-inch rectangle. Sprinkle the rectangle with one-half of the filling, then fold in half to make a 12x3-inch rectangle. Cut into twelve 3x1-inch strips. Twist the strips. Arrange twisted strips on a greased large baking sheet to form a tree shape. Use 10 strips for the lower branches, placing cut ends toward the center, and one strip for the base. Cut remaining strip in half; use for top branches.
4. Repeat with remaining dough, forming another tree shape on a second baking sheet. Cover; let rise in a warm place about 30 minutes or until nearly double.
5. Bake in a 375 degree F oven for 12 to 15 minutes or until golden brown. Remove from baking sheets; cool on wire racks.
6. In a small bowl stir together powdered sugar and vanilla. Stir in enough milk (3 to 4 teaspoons) to make a glaze of drizzling consistency. Drizzle over breads. Garnish with cherries. Makes 2 loaves (16 servings).
