Preheat oven to 350 degrees F (175 degrees C)
Grease and flour two 9 inch, round, cake pans; cover bottoms with waxed paper
In a large bowl, combine flour, 2 cups sugar, cocoa, baking powder, baking soda, and salt. Add eggs, milk, oil, and 1 tablespoon vanilla; beat until well blended
Pour batter into prepared pans. Bake for 35 minutes, or until wooden toothpick inserted in centers comes out clean.
Cool layers in pans on wire racks 10 minutes. Loosen edges, and remove to racks to cool completely
Drain cherries, reserving 1/2 cup juice. Combine reserved juice, cherries, 1 cup sugar and cornstarch in a 2 quart saucepan. Cook over low heat until thickened, stirring constantly. Stir in 1 teaspoon vanilla. Cool before using