Lift the bread pan out of the machine and fit the blade. Put the dough ingredients in the pan, following the order specified in the manual. Fit the pan into the machine and close the lid. Set to the dough programme.
Meanwhile, make the frangipane filling by creaming together the butter and sugar. Add the egg, almonds and almond essence and mix together.
At the end of the programme turn the dough out on to a floured surface and roll it out to a rectangle, 38 x 30 cm (15 x 12 inches).
Spread the frangipane over the dough to within about 2 cm (¾ inches) of the edge. Sprinkle the cherries over the top, then roll up the dough, starting from one of the longer edges. Twist the rolled-up dough to give a corkscrew effect then carefully transfer it to a greased baking tray. Cover with oiled clingfilm and leave in a warm place for about 30—40 minutes or until well risen.
Brush with milk, sprinkle with the flaked almonds and bake in a preheated oven, 200°C (400°F), Gas Mark 6, for about 25 minutes until golden and the bread sounds hollow when tapped with the fingertips. Cover with foil after 15 minutes if over-browning. Transfer to a wire rack and dust with sifted icing sugar. Serve warm or cold.