Whisk together warm water, yeast, and 1 teaspoon sugar and set aside.
Mix 2 cups flour, ⅓ cup sugar, salt, powdered milk, anise, and nutmeg in stand mixer fitted with a beater blade. Turn machine to low and add 6 tablespoons butter, eggs and yeast mixture.
After the liquids are incorporated, switch to the dough hook, and gradually add the remaining flour (add more or less as necessary) until dough clings to the hook and almost cleans the sides.
Knead until the dough is smooth and just slightly sticky, 6 to 7 minutes. Knead in dried cherries the last minute.
Turn dough onto lightly floured counter and knead briefly to form smooth, round ball. Coat large bowl with nonstick cooking spray. Place dough in bowl and coat surface of dough with cooking spray. Cover bowl with plastic wrap and allow to rise in a warm, draft free place until dough doubles in size, 50 to 60 minutes.
While dough is rising, mix brown sugar and cinnamon together in bowl.
Remove dough from bowl, and pat into a 16 inch square. Spread 2 tablespoons melted butter evenly over dough and sprinkle on brown sugar cinnamon mixture.
Using dental floss or knife, cut dough into 12 pieces. Place each roll cut side up in a greased 13 x 9 pan. Top each roll with a teaspoon or two of jam and sprinkle with sliced almonds.
Cover pan with plastic wrap and let rise until double in size, about 30 minutes.
Heat oven to 325 degrees. Bake uncovered, 30 minutes or until golden brown. For the glaze: whisk powdered sugar, milk and vanilla in small bowl until smooth. Drizzle glaze over warm sweet rolls.