1. Line 8-inch square pan with foil, extending foil over edges of pan.
2. Beat almond paste and 1/4 cup sweetened condensed milk in small bowl until blended. Add food color; beat until well blended. Refrigerate about 1 hour or until stiff. Spread onto bottom of prepared pan.
3. Place chocolate chips and remaining sweetened condensed milk in medium microwave-safe bowl. Microwave at MEDIUM (50%) 1 to 1-1/2 minutes or just until chocolate is melted and mixture is smooth when stirred. Spread over top of almond paste layer. Cover; refrigerate until firm.
3. Use foil to lift fudge out of pan; peel off foil. Cut fudge into squares; garnish with candied cherry halves and sliced almonds. Store in tightly covered conatiner in refrigerator. About 4 dozen pieces.
NOTE: For best results, do not double this recipe.