In a large bowl, cream together the butter and sugar until smooth. Gradually stir in the flour until well blended. On a lightly floured surface, roll the dough out to 1/2 cm thickness. Cut using a round biscuit cutter.
Bake for 8 to 10 minutes in the preheated oven. Allow the bisuits to cool on baking sheet for 5 minutes before cooling on wire rack to cool. Spread one teaspoon of jam between two biscuits and sandwich together. Repeat with remaining biscuits.
In a medium bowl, gradually stir the milk into the icing sugar until the icing is spreadable. Ice the top of the sandwiched biscuits. Top each one with half of a cherry while the icing is still wet.