In large bowl, combine flour, sugar, baking powder, salt and butter; cut with pastry blender until crumbs are size of large peas. Melt over hot (not boiling) water, Nestle's semisweet chocolate morsels. Remove from heat and cool slightly at room temperature (about 5 minutes). Add milk and egg to melted chocolate and mix well. Blend chocolate into flour mixture.
Spread cherry pie filling in bottom of a 2-quart casserole. Drop chocolate batter randomly over cherries. Sprinkle with chopped nuts. Bake at 350 degrees F for 40 to 45 minutes.