Preheat oven to 425°. Line a large baking sheet with parchment paper, or line with a silicone baking mat.
Unroll Puff pastry. Using a pizza cutter, cut pastry lengthwise into 8 individual, 1 inch wide strips. Cut each strip in half, creating two 1 inch wide strips. Fold each strip in half, lightly pressing the edges together as you fold them. Lay two folded strips next to each other. Pinch the top end together and twist the two strips together. Pinch the end closed. Roll the twisted strip into a loose knot, tucking one end just under the knot to form the base of the danish. Finish with the remaining dough, creating 8 individual knots. Place each knot on the parchment-lined baking sheet.
In a small bowl, combine softened cream cheese, sugar, almond extract and half of beaten egg. Using a wire whisk, mix together until smooth. Brush each knot with the remaining beaten egg. Sprinkle with coarse sugar crystals if desired. Place ½ tablespoon of cream cheese mixture in the center of each knot.
Bake at 425° for 10–15 minutes until the edges of the pastry begin to turn golden brown and the cream cheese center has begun to puff slightly. Carefully slide the baking sheet out of the oven and place 3 cherries on top of the partially baked cream cheese mixture. Slide the baking sheet back into the oven and continue baking for another 5–10 minutes, until puff pastry is golden brown and cream cheese filling is set.
Remove from baking sheet and place on cooking rack until cool.
In a small bowl, combine powdered sugar and 1–2 tablespoons of milk, until the desired consistency is reached. Using a spoon, drizzle the icing over cooled knots and sprinkle with sliced almonds.
Store in an airtight container for up to 3 days. Reheat for 15–20 seconds in the microwave if wanting to serve warm.