Sift flour, sugar, baking powder and salt into mixing bowl. Drop in shortening. Add 1/2 cup milk, flavoring and 1 egg and beat 2 minutes with mixer at low speed. Scrape bowl and beater. Add remaining milk and 2 eggs and beat well with electric mixer.
Bake in 2 deep 9" greased layer pans in moderately hot oven, 375 degrees for 25 to 30 minutes.
Spread frosting between layers and on top and sides of cake. Swirl the frosting into graceful peaks on top of cake and place halves of maraschino cherries around rim of cake about 2" apart.
Place ingredients in top of double boiler and mix thoroughly. Place over rapidly boiling water and beat constantly with beater until mixture will hold a peak (about 7 minutes). Remove from hot water, add 1 teaspoon vanilla and 1/2 teaspoon almond extract and beat until cool. Just before spreading, carefully fold in 18 maraschino cherries, cut in pieces and 12 marshmallows, cut in pieces into frosting.