Preheat oven to 350 degrees F (175 degrees C). Grease and flour 2 (9 inch) pans. Sift together the flour, baking powder, and salt. Set aside.
In a large bowl, cream together the shortening and sugar until light and fluffy. Beat in the flour mixture alternately with the milk and vanilla.
In a large glass or metal mixing bowl, beat egg whites until stiff peaks form. Fold 1/3 of the whites into the batter, then quickly fold in remaining whites until no streaks remain. Pour half of batter into one pan. Tint remaining batter pink with red food coloring, then pour into pan.
Bake in the preheated oven for 30 to 35 minutes, or until a toothpick inserted into the center of the cake comes out clean. Allow to cool.
Assemble the cake: In a medium bowl, tint half of the frosting pink with red food coloring. To remaining frosting, stir in cherries and nuts. Spread this filling between the layers. Frost top and sides with pink frosting.