In a large mixing bowl, whisk together the sugar, Kool-Aid, milk, and cream until the sugar is dissolved.
If NOT using an ice cream maker:
Place in a bread pan, cover with plastic wrap, and freeze for about 2 hours or until thickened. Transfer to a mixing bowl and mix until smooth. Fold in the cherries and then place back in the bread pan, cover, and freeze for 6 hours or overnight.
If using an ice cream maker:
Pour mixture into the bowl of the ice cream maker and churn according to manufacture instructions adding the cherries for the last few minutes. Pour into a bread pan and freeze for 6 hours or overnight.
To serve:
Remove from the freezer 20 minutes before serving to soften. Scoop into bowls and top with additional cherries, whipped cream, and garnish is a slice of lime.