Line an 8 x 8 baking dish with foil.
In a medium saucepan combine the cream cheese frosting, white chocolate chips, and butter. Heat over medium low heat, stirring frequently, until the chocolate chips have melted and everything is smooth.
Remove from heat and stir in the rum, pineapple, nuts, and 1/4 cup of coconut flakes. Stir well and pour into the prepared pan.
Quickly push 20 cherries into the fudge (4 down and 5 across). Sprinkle with the remaining coconut flakes. Gently press down on the coconut flakes so that they will stick.
Refrigerate for 30 minutes or until solid.
Carefully remove the foil from the pan. Cut into 20 squares using the cherries as a guide for where to cut.