Line a 9" square pan with aluminum foil so foil extends over sides of pan; butter foil.
Combine sugar, butter, and egg nog in large saucepan. Bring to a boil, stirring constantly. Reduce to medium and continue to boil, stirring constantly, for five minutes. Remove from heat.
Add marshmallow cream, white chocolate, and extract stirring until smooth. Stir in nuts and cherries.
Spread evenly into prepared pan. Chill until set.
Remove from pan by lifting foil. Remove foil, cut into squares. Store in refrigerator.