In double boiler, combine chocolate chips and milk. Stir over medium heat until melted and thick no longer. Take off heat; add chopped walnuts and 1/2 teaspoon vanilla and stir. Cover with tin foil and set in refrigerator for 1 hour. Place walnuts halves in circle on plate. Spoon fudge on plate to form a wreath. Fudge should not be smooth. Add cherries around wreath in threes to form berries.