In a large bowl, cream butter, cream cheese and sugar. Add eggs, one at a time, beating well after each addition. Add vanilla. Sift flour together with baking powder and salt; stir into creamed mixture. Fold in cherries and 1/2 cup nuts. Sprinkle remaining nuts into a greased 10-in. fluted tube pan. Pour batter into pan. Bake at 325° for about 70 minutes or until a toothpick comes out clean. Cool cake in pan 5 minutes on wire rack before removing from pan. Cool thoroughly. Make a glaze with confectioners' sugar and milk; drizzle over cake. Garnish top with cherries and pecans if desired.