Cream together the softened butter and powdered sugar using an electric mixer until light and fluffy (about 2-3 minutes).
Add the instant pistachio pudding mix and mix until fully incorporated.
Gradually add the all-purpose flour and almond extract. Add food coloring if desired. Mix until just incorporated.
Gently fold in the finely chopped maraschino cherries until evenly distributed.
Cover the bowl with plastic wrap and refrigerate the dough for at least 30 minutes.
Preheat the oven to 350°F (175°C) while the dough is chilling.
Use a cookie scoop or spoon to portion out the dough onto a baking sheet lined with parchment paper. Bake for 10-12 minutes until edges are golden.
Allow cookies to cool on the baking sheet for about 5 minutes before transferring them to a wire rack to cool completely.
