Preheat oven to 375°F.
Cream butter, sugar, milk, and vanilla extract.
Add flour, cherries, and pecans (if using).
Form into 2 rolls each 2 inches in diameter and 8 inches long. Roll in coconut.
Wrap in waxed paper. Chill several hours.
Slice 1/4" thick, place on ungreased cookie sheet.
Bake for 10 - 12 minutes.