Step 1: Prepare Your Baking Dish - Spray your 9x9 inch baking dish with cooking spray or line it with parchment paper.
Step 2: Combine the Dry Ingredients - In a mixing bowl, combine 1 cup of granulated sugar, the JELLO packets, and the unflavored gelatin. Whisk until well blended.
Step 3: Add the Wet Ingredients - In a separate bowl, mix the applesauce and lemon juice. Gradually pour into the dry ingredients while whisking to avoid lumps.
Step 4: Heat the Mixture - Transfer to a saucepan over medium heat, stirring continuously until smooth, about 5-7 minutes.
Step 5: Pour into the Dish - Once thickened, pour into the prepared baking dish and spread evenly.
Step 6: Chill and Set - Cover with plastic wrap and refrigerate for at least 4 hours or overnight.
Step 7: Cut and Coat - Remove from dish and cut into small squares, rolling in remaining sugar to coat.
Step 8: Enjoy! - Your Star Spangled Gumdrops are ready to be enjoyed!