Preheat oven to 350 degrees. In a large mixing bowl, bear butter and sugar until fluffy. Add eggs and vanilla; mix well.
In a large bowl, combine dry ingredients; stir into butter mixture (dough will be stiff). Shape into 1-inch balls. Place 1 inch apart on ungreased baking sheets. Press cherry into center of each cookie. Bake 8 to 10 minutes. Cool. *To make these cookies fabulous make sure to not make them too big so the cherry/chocolate ration is good and do not overbake! Start with 8 minutes. Remove from pan right after they come out of the oven.
In heavy saucepan over medium heat, melt chips with condensed milk. Cook until mixture thickens, about 3 minutes. Frost each cookie, covering cherry. Store loosely covered at room temperature.