Preheat the oven to 350°F (180°C) and line an 8x8-inch baking pan with parchment paper, leaving an overhang on the sides to lift the finished cake out. Set aside.
In the bowl of a stand mixer fitted with the paddle attachment cream butter and sugar together at medium speed until light and fluffy, about 4-5 minutes.
Add one egg at a time and mix for 20 seconds after each addition. Add vanilla extract. Mix until combined. Scrape bottom and sides of the bowl as needed with a rubber spatula.
In a small bowl combine flour, baking powder, and salt.
With the mixer running at medium speed, alternately add flour mixture and milk in two portions. Mix until just combined. Don't overmix.
Pour batter into prepared pan and spread evenly. Top with cherries and spread evenly.
Bake for about 40-45 minutes, or until a toothpick inserted in the center comes out clean with only a few moist crumbs attached. Let the cake rest for about 10 minutes then transfer to a cooling rack. Serve dusted with powdered sugar.