Preheat the oven to 350 degrees F (175 degrees C). Line the bottoms of two 9 inch round pans, or one 9 x 13 inch rectangular pan, with parchment paper.
In a mixing bowl, stir shortening to soften. Sift in flour, baking powder, salt, and sugar. Add 3/4 cup of the milk and the flavorings, and mix until all flour is dampened. Beat well, with an electric mixer if possible. Add unbeaten egg whites and remaining milk, and beat well. Stir in nuts and cherries. Pour batter into prepared pans.
Bake for 25 to 30 minutes. Cool completely. Fill and frost with Seven Minute Frosting, and decorate with additional maraschino cherry halves.