Sauté shallot in hot oil in a small saucepan over medium heat 2 to 3 minutes or until softened. Stir in cherries, next 5 ingredients, and 3/4 cup water.
Bring cherry mixture to a simmer. Reduce heat to medium-low, and cook, stirring often, 5 minutes or until mixture has thickened slightly and cherries are plumped. Serve warm.