In small bowl, place apricots and raisins. Add orange juice and let sit 15 minutes, stirring occasionally.
In small dish, place margarine. Add onion, garlic, curry powder, cinnamon, chili powder, salt, ginger and bay leaf; stir to mix well.
In greased 2-quart shallow baking dish, arrange chicken in single layer. Spread spice mixture evenly over chicken. With slotted spoon, remove apricots and raisins from orange juice and arrange in dish with chicken. To orange juice, add skim milk; pour over chicken.
Cover and bake in 350F. oven about 1 hour, removing cover after 45 minutes and cooking uncovered for final 15 minutes.
If desired, garnish with red cherries and serve with rice.