In the bowl of an electric mixer fitted with the paddle attachment, cream butter, cream cheese and sugar until well blended, 1 to 2 minutes. Beat in almond extract.
Combine the flour, baking powder and salt; gradually add to the creamed mixture. Cover and refrigerate for 1 hour or until easy to handle.
Preheat oven to 350 F degrees.
Shape dough into 1 inch balls; roll in coconut flakes. Place 2 inches apart on ungreased baking sheets.
Bake for 12 to 15 minutes or until lightly browned. Immediately press a cherry half into the center of each cookie. Remove to wire racks to cool.