Combine sugar, milk, butter and salt in large saucepan. Bring to a boil, stirring constantly until sugar is dissolved. Cook over medium heat, stirring occasionally, until candy thermometer reads 236°. Remove from heat immediately; set pan in cold water. Do not stir or beat until cooled to lukewarm. Add vanilla; beat until candy becomes thick and creamy and loses its shine. When candy begins to set, add cherries and nuts; fold in quickly. Pour into buttered 8" x 8" pan. Let stand at room temperature until firm. Cut into squares.
Packaging instructions:Painted Box: Apply primer, then light blue paint to the outside of a small round paper maché box and lid; allow to dry. Apply self-adhesive snowflake-shaped stickers to the box. For the knob, stack and glue several white buttons to the lid.