Beat butter for 30 seconds. Beat in sugar, baking powder, and 1/4 tsp salt. Add egg and vanilla and mix well. Beat in as much flour as you can with mixer, then stir in any remaining flour.
Divide dough in half. Tint one portion red food coloring paste and the other portion with green food coloring paste. Add finely chopped almonds to one portion only, and knead well to distribute. Cover and chill dough for 1 hour or until firm. Divide each portion in half.
On lightly floured tea towel, roll a red dough portion into a 12"x8" rectangle. On waxed paper, roll a green portion into a 12"x8" rectangle. Invert green rectangle over red rectangle and remove waxed paper. Roll up, starting from one long side. Pinch to seal. Wrap in plastic wrap. Repeat with remaining portions. Chill cookie logs for 1 hour or until firm.
Preheat oven to 375 degrees. Lightly grease cookie sheet. Remove one cookie log from refrigerator and slice into 1/4" slices. Place about 2" apart on greased cookie sheet. Place one quarter cherry in the middle of each cookie, and bake 8-10 minutes or until the tops are set. Remove to wire rack to cool.