Preheat oven to 350 degrees F. Generously coat a 10-inch nonstick fluted tube pan with nonstick cooking spray.
With kitchen scissors, cut each biscuit into 2 pieces. Using your hands, flatten each piece into a 3-inch round of dough. Place a cherry in the center of each round. Bring the edge of the dough up and around the cherry to form a ball. Pinch the edges of the dough together to seal firmly.
Dip each ball into the melted butter, then roll it in the granulated sugar. Layer coated balls in the prepared pan. Drizzle with any remaining butter; sprinkle with any remaining sugar.
Bake 40 to 45 minutes or until a toothpick comes out clean (If needed, cover bread with foil the last 15 minutes of baking to prevent overbrowning.) Cool bread in pan for 5 minutes. Run a small rubber spatula around edge of the bread to loosen. Invert pan onto a platter; remove pan. Cool slightly.
Meanwhile, in a small bowl combine powdered sugar, vanilla, and milk (1 tablespoon at a time) until desired consistency.
Drizzle icing over warm monkey bread. Top with almonds and, if desired, colored sugar. Serve warm.