Place powdered sugar and butter in the bowl of a stand mixer. Beat on medium speed until light and fluffy, about 2 minutes. Add eggs, vanilla, and rum extract, and beat to combine. Scrape down the sides of the bowl with a spatula.

Add the flour and salt, and stir to combine. Stir in the coconut and butterscotch morsels. Cover the dough and refrigerate for at least 2 hours, or up to 1 day.

While the dough is chilling, slice each maraschino cherry into 8 even slices. Place on a paper towel to allow the cherry slices to drain.

When you’re ready to bake the cookies, preheat the oven to 375°F, and place parchment paper or a silicone mat on a baking sheet.

Roll the dough in 1-inch balls. Place the balls on a a cookie sheet, leaving 1–2 inches between the balls.

Dip a drinking glass into granulated sugar, and use the glass to press each dough ball down into a disk, about ⅓–½ inch thick.

Arrange 8 maraschino cherry slices on top of each disk to resemble a poinsettia. Place several yellow sprinkles OR a butterscotch chip in the center.