Add first 7 ingredients to a 1-1/2- or 2-pound bread machine according to manufacturer's directions. Select dough cycle. When cycle is complete, remove dough from machine. Cover and let rest for 10 minutes.
On a lightly floured surface, roll out dough to an 18x10-inch rectangle. Brush with margarine or butter. Sprinkle with brown sugar, raisins, and cinnamon. Roll up dough tightly, beginning at a long side; seal by pinching edges together. On a greased baking sheet shape dough into a circle, seam side down. With a sharp knife, make 1/4-inch deep cuts about 1 inch apart on top of the ring just to expose filling. Cover and let rise in a warm place for 30 to 40 minutes or until double.
Bake in a 350 degree F oven for 25 to 30 minutes or until golden brown; cover with foil for the last 10 minutes to prevent overbrowning, if necessary. Cool slightly on a wire rack.
For glaze, stir together powdered sugar and enough water to make of drizzling consistency. Brush ring with glaze while still warm. Garnish with walnuts and cherries. Serve warm or cool. Makes 12 or 18 servings.