Line an 8-inch square baking dish with parchment paper, leaving some overhang for easy removal later.
In a large saucepan, combine the chopped white chocolate, sweetened condensed milk, and unsalted butter over low heat. Stir continuously until the chocolate and butter have melted and the mixture is smooth.
Stir in the ground almonds, chopped dried cherries, and almond extract until well combined.
Pour the fudge mixture into the prepared baking dish and spread it out evenly with a spatula. If desired, sprinkle the toasted flaked almonds over the top for added texture and flavor.
Place the baking dish in the refrigerator and chill for at least 4 hours, or until the fudge is set.
Once set, remove the fudge from the refrigerator and lift it out of the baking dish using the parchment paper overhang. Transfer it to a cutting board and slice it into small squares or rectangles.
Serve the Cherry Bakewell Fudge at room temperature and enjoy the delicious combination of sweet white chocolate, tart cherries, and nutty almonds.