Preheat oven to 350 degrees. Line Baking sheet with parchment or a baking mat and set aside.
In a large stand mixer, whip butter and sugar together. Finely grind hazelnuts in food processor and stir into butter and sugar mixture along with the vanilla. Scrape sides and mix again. Stir in all the flour until just incorporated.
Form about 2 tablespoons of dough into a circle on prepared baking sheet and repeat with remaining dough. 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 a cherry on each wreath. Serve.