Preheat oven to 350° F. Line baking sheet with parchment or a baking mat and set aside.
In a large bowl, using an electric hand mixer (or stand mixer), whip butter and sugar together until well combined. About 2 minutes.
In a food processor, grind toasted hazelnuts to a fine texture, then add to the bowl with vanilla extract. Mix on low speed until combined.
Scrape sides and mix again. Stir in all the flour until just incorporated.
Form dough (about 2 Tbsp) into rounds, creating a small hole in the center to make a wreath or donut shape. Place cookies on the prepared baking sheet. Repeat with remaining dough. You should have 12 equal circles.
Bake for 8-10 minutes or until edges are barely golden. Cool on baking sheet 2 minutes before removing to cooling rack.
Dust tops of cookies with powdered sugar and place half of a candied cherry on each wreath. Serve.
Notes
*If you can't find candied cherries, you can use jarred maraschino cherries or red hot candies.