Cream butter; gradually add sugar, beating until light and fluffy. Add eggs, one at a time, beating well after each addition. Gradually add flour, stirring well. Stir in almond extract.
Spoon batter into greased and floured muffin pans, filling half full. Bake at 350° for 20 to 25 minutes or until cupcakes test done. Cool in pans 10 minutes; remove from pans, and pour sherry evenly over cupcakes. Let set at least 30 minutes. Just before serving, top each cupcake with a dollop of whipped cream and a cherry.