Cleverley has scored goals against Manchester City and Everton in Villa's last two fixtures and Sherwood believes the midfielder can build on this momentum.
The Claret and Blues boss says that he always considered Cleverley a goalscoring midfielder and he wants him to rediscover his shooting boots now his confidence is growing.
"I was pleased for Tom after the Everton game. He was excellent in midfield - and he scored," Sherwood said. "I think he can add goals to his game too. He has two in two now. He can burst from midfield and when he gets in there he has a cool head.
"I saw him score many, many goals when he was on loan from Manchester United to Watford. That was a few years ago but you don't lose that. You don't lose that knack. I think we need to get that back."
Cleverley's best run of form in his career so far came when he was at Watford back in 2009-10 - where he scored 11 goals in 33 games.
That was at Championship level, but it highlighted the potential that Cleverley had as a youngster.
Since, his career has faltered slightly. The England international looked bereft of confidence at Manchester United, as criticism of his performances became more vocal.
A move away from Old Trafford has given him a new lease of life though and since Sherwood has taken charge Cleverley has been one of Villa's top performers.
The 25-year-old is starting to prove his quality now and most Villa fans are hoping that his loan spell will become a more long-term stay when his current deal expires.