We are given a cube of side 7 cm, which is painted black on all sides. The cube is then cut into 1 cm sided smaller cubes. This means the original cube is cut into \( 7^3 = 343 \) smaller cubes.
Identify the cubes with three painted faces
The cubes with three painted faces are the ones located at the 8 corners of the large cube. These cubes are at the intersection of three faces.
Since there are 8 corners in a cube, there will be exactly 8 smaller cubes with three faces painted.
Thus, the number of cubes with three faces painted is \( \boxed{8} \).