Boil milk and sugar in a deep non-stick pan on medium heat. Add cornflour mixture and cook stirring continuously. Add saffron and mix well and continue to cook, stirring continuously on medium heat, for ten minutes or till the milk thickens.
Remove from heat and set aside to cool till lukewarm. Put the yogurt in a serving bowl, add thickened milk and mix well. Add cherries and mix well.
Set aside in a warm place for three to four hours. Chill in the refrigerator before serving. Serve chilled.