Preheat oven to 350 degrees F. Line a baking sheet with parchment paper.
In a medium bowl, combine granulated sugar, vanilla extract, and cream cheese. Beat until smooth; set aside.
Unroll crescent rolls. There will be 4 large rectangles of dough pre-cut down the center lines. Run a knife down the center both vertically and horizontally. Disregard the crescent shapes, you want 4 rectangles. Repeat with second crescent rolls container. SEE NOTES FOR A SIMILAR YOUTUBE VIDEO LINK to demonstrate this.
Pinch the seams in each rectangle to hold together and form a solid piece of dough. Generously coat each side of the rectangles with sugar. You should have 8 rectangles of dough from two containers of store-bought rolls.
Slice each rectangle of dough in half the long way. You will have 16 strips of sugared dough once done.
Gently stretch each strip of dough without it breaking.
Twist the dough rope.
Spiral the rope around itself to form a loose circle/spiral. SEE NOTES FOR A SIMILAR YOUTUBE VIDEO LINK to demonstrate this.
Place onto cookie sheet, spacing danishes about 2 inches apart.
Using a spoon/fingers, press fingers into center of dough to create of bowl/well.
Add cream cheese to the center and spoon a little cherry filling on top of cream cheese.
Bake in oven for 15-17 minutes or until golden brown.
To make the icing, combine powdered confectioners' sugar and water. Mix until smooth. Drizzle over the top of each cooled danish.