Place 3 cups (750 mL) cherries, sugar, lemon zest, lemon juice and cranberry cocktail in a large saucepan over medium-high heat and cook for 20 to 25 min., stirring until cherries release their juices. Remove from heat and scoop cherries into a strainer over the saucepan. Press cherries with the back of a spoon to release remaining juices into saucepan. Discard remaining cherries from strainer.
Stir in nutmeg, honey and vanilla. In a small bowl, combine cornstarch with 1/4 cup (60 mL) of water. Slowly whisk into cherry sauce. Simmer for 1 min. or until sauce just starts to thicken. Remove from heat and stir in butter until melted and sauce is silky. Pour sauce into a bowl, cover with plastic wrap and chill for 1 hour.
Mix remaining 1 cup (250 mL) raw cherries into cooled sauce. Store in a resealable container in the refrigerator for up to 1 week.
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