Combine first 4 ingredients in a medium saucepan; bring to a boil. Add cherries, and cook 1 minute. Stir in cranberries; bring to a boil. Reduce heat, and simmer 10 minutes or until cranberries pop. Remove from heat. Stir in walnuts, grated rind, and extract. Garnish with orange rind strips, if desired. Cover and chill.