Preheat oven to 350 degrees. Line two cookie sheets with parchment paper, then set aside.
If using dried cherries, put them in a small bowl and cover them with warm water. Set aside to let them plump up for about 10 minutes. Then drain them, and lay them out on paper towels so that any excess water can drain off.
Put almonds in a food processor and pulse until almost finely ground - you don't want them as fine as almond flour. A bit of texture is what is needed.
In a large bowl, beat butter, sugar, mahlab and vanilla until light and fluffy. Add flour & ground almonds and mix well.
Take a tablespoon of dough, roll it into a ball. Flatten it a little, put a cherry in the middle, then enclose dough all around, rolling it into a ball. (If using rehydrated dried cherries, they might be smaller than candied cherries, so use 2 or 3, if necessary.)Place on parchment lined cookie sheet, then repeat with the rest of the dough, leaving a small space between each dough ball. (If using rehydrated cherries, you might have cherries left over. They're great in oatmeal.)
Bake for 17 -19 minutes, or until cookies are golden brown. While they are baking, put the rest of the powdered sugar on a plate.
When the cookies come out of the oven, carefully remove them one at a time and roll gently in powdered sugar, until they are covered all over. Let them cool on a rack. When cool, roll again in the powdered sugar.
These will keep for 3-5 days in a covered container, but they usually disappear before then.