Preheat your oven to 350°F (175°C) and grease and flour a 9x9 inch square baking pan.

In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Add the eggs one at a time, mixing well after each addition.

In a separate bowl, whisk together the flour, baking powder, and salt.

Gradually add this dry mixture to the creamed mixture, alternating with the milk.

Add the vanilla extract and gently fold it in.

Fold in the chopped Maraschino cherries carefully.

Pour the batter into the prepared pan and bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean.

In a bowl, combine the powdered sugar and milk to create a smooth frosting.

Once the cake has cooled, spread the frosting generously on top and decorate with reserved Maraschino cherries.