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Cream butter and sugar in bowl and blend in milk and vanilla. Stir in flour, cherries and nuts. Form into 2 rolls, 2 inches in diameter and 8 inches long. Roll in coconut. Wrap and chill several hours or overnight. Slice 1/4 inch thick and place on ungreased cookie sheet. Bake at 375 degrees for 12 minutes or until edges are golden.
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