Coat a 9-by-13-inch ovenproof baking pan with no-stick spray. Preheat oven to 350°.
In a small pot, heat 1 cup of apple juice to a simmer. Remove from flame. Stir in dried cherries and soak them while assembling remaining ingredients.
Place a colander over a large bowl. Drain the peaches, reserving the liquid from the can in the bowl. Dice peaches.
In a medium-sized pot, heat the remaining apple juice to a simmer. Remove from flame. Soak broken matzah squares in apple juice until soft, about 5 minutes. Using the colander, drain matzah and discard the juice. Reserve.
With an electric beater, whip eggs until frothy. Add lemon zest and juice, sugar and salt, and beat until well combined.
Drain the cherries and add them to the egg mixture, along with the peaches and walnuts. On a low speed, mix until incorporated. With a wooden spoon, add soaked matzah and gently stir until incorporated.
Move mixture to prepared pan and spread evenly. Pour 1/3 cup of the reserved peach juice evenly over the top. Drizzle the melted margarine or butter over the surface.
Kugel will look quite liquid. Place kugel in the oven and bake for 45 minutes, or until edges brown and a tester inserted in the middle comes out clean. Serve immediately or cool to room temperature, cover with plastic wrap, and refrigerate for a day.
Cut into squares before serving. Kugel tastes delicious with sour cream.