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1. Line 8-inch square pan with foil, extending foil over edges of pan.
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2. Beat almond paste and 1/4 cup sweetened condensed milk in small bowl until blended. Add food color; beat until well blended. Refrigerate about 1 hour or until stiff. Spread mixture in prepared pan.
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3. Place chocolate chips and remaining sweetened condensed milk in medium microwave-safe bowl. Microwave at MEDIUM (50%) 1 minute; stir. If necessary, microwave at MEDIUM an additional 15 seconds at a time, stirring after each heating, just until chips are melted when stirred. Spread over almond paste layer. Cover; refrigerate until firm.
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4. Use foil to lift fudge out of pan; peel off foil. Cut fudge into squares; garnish with cherry halves and almonds. Store in tightly covered container in refrigerator.
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Note
For best results, do not double this recipe.
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