Line an 8-inch pan with aluminium foil and butter or spray with non-stick cooking spray.
Mix brown sugar with 1/4 cup white sugar, flour and walnuts. Stir in butter, using a fork or pastry blender, until crumbly.
Remove and set aside 1 cup of the mixture. Place the rest in the baking pan and press down evenly.
Bake in preheated 350° F. oven for 12 to 15 minutes, until just starting to brown.
Remove from oven and allow to cool slightly.
Meanwhile, using an electric mixer, beat cream cheese and 1/4 cup sugar.
Add egg, lemon juice, 2 tablespoons milk and vanilla. Combine well.
Add half the red and green cherries and stir until well distributed.
Pour mixture onto baked crust. Top with reserved crumbs.
Bake for 25 minutes until set and beginning to brown.
Remove from oven and allow to cool completely.
In a small bowl, stir together the confectioners' sugar and 1 tablespoon milk.
Spread over the top of the cooled cheesecake, and then sprinkle with remaining red and green cherries.
Refrigerate for at least 30 minutes and cut into pieces..
