1. Grease 8 inch square baking pans; set aside. Setting aside 12 cherries for decoration, coarsely chop remainder.
2. In heavy 2 quart saucepan over medium heat, stir sugar and evaporated milk until sugar is dissolved and mixture boils; cook 5 minutes, stirring constantly. Remove from heat; stir in marshmallows and white chocolate until melted and mixture is smooth. Stir in chopped walnuts and cherries just to mix well.
3. Immediately pour fudge into prepared pan; let stand about 10 minutes until top is firm to touch. Using tip of sharp knife, score top of fudge in approximately 1 1/2 inch squares to make 25 squares, refrigerate about 1 hour until firm.
4. Cut fudge into squares along score marks. Cut reserved 12 cherries in half; cut each half into thin slivers. Decorate top of fudge with slivers. Store in tightly covered container, with wax paper between layers, in refrigerator up to 2 weeks. Makes 25 pieces.
