Melt chocolate chips with sweetened condensed milk in medium saucepan over low heat. Remove from heat.

Stir in cherries and vanilla. Refrigerate 30 minutes.

Divide mixture in half; place each portion on a 20-inch piece of waxed paper. Shape each into a 12-inch log. Press walnuts onto log. Wrap tightly; refrigerate for 2 hours or until firm.

Removed waxed paper; cut into 1/4-inch slice to serve. Store, covered, in refrigerator.

Almond Cherry Fudge Logs: Omit vanilla and walnuts. Add 1 teaspoon almond extract and 1-1/2 cups sliced almonds, toasted and chopped. Proceed as above.

Recipe Courtesy of The Cherry Marketing Institute.