Heat milk and water until warm (100° to 110°F) in a small bowl. Add yeast and 1 tablespoon sugar. Allow to rest 5 minutes.
Combine 2 cups flour, remaining 1/4 cup sugar and salt in a large mixer bowl. Add egg, 1/4 cup butter and yeast mixture and beat for 2 minutes. Gradually stir in enough remaining flour to form a soft dough.
Knead dough on lightly floured surface for 6 to 8 minutes, until dough is smooth and elastic. Shape dough into ball and place in greased bowl, turning once to coat. Cover and let rise in a warm, draft-free place until dough is doubled in size, about 1 hour.
For filling: Combine almond paste, sugar, brown sugar, 3 tablespoons butter and cinnamon in a large mixer bowl. Mix on medium speed for 2 minutes.
Punch dough down. Roll into an 18 x 12-inch rectangle. Carefully spread filling evenly onto dough. Sprinkle with cherries. Roll up dough, starting with the short end. Pinch seam to seal. Cut dough into 12 equal sized rolls. Place rolls in a greased 13 x 9-inch baking pan. Cover and let rise until doubled in size, about 40 minutes.
For cherry glaze: Combine powdered sugar, heavy cream, cherry jam and almond extract in a large bowl. Beat on medium speed until thoroughly combined.
Bake rolls for 25 to 30 minutes in a preheated 350°F oven. Allow to cool on wire rack. Drizzle rolls with cherry glaze.