PREPARATION:
- Beat butter and powdered sugar in large bowl with electric mixer at medium speed until light and fluffy. Add egg and vanilla; beat until well blended.
- Combine candied fruit and walnuts in medium bowl. Stir 1/4 cup flour into fruit mixture. Add remaining 2-1/4 cups flour to butter mixture; beat at low speed until blended. Stir in fruit mixture with spoon.
- Shape dough into 2 logs, each about 2 inches in diameter and 5-1/2 inches long. Spread coconut evenly on sheet of waxed paper. Roll logs in coconut, coating evenly. Wrap each log in plastic wrap. Refrigerate 2 to 3 hours or overnight, or freeze up to 1 month. (Let frozen logs stand at room temperature about 10 minutes before slicing and baking.)
- Preheat oven to 350°F. Grease cookie sheets. Cut logs into 1/4-inch-thick slices; place 1 inch apart on prepared cookie sheets.
- Bake 13 to 15 minutes or until edges are golden brown. Remove to wire racks to cool completely. Decorate with cherry halves, if desired. Store in airtight container.
