Lightly mist a 9x13 inch baking dish with cooking spray to prevent sticking. Set it aside.
In a large saucepan, combine 2 cups of the granulated sugar, the unsweetened applesauce, your chosen Jell-O mix, unflavored gelatin, and fresh lemon juice. Stir everything together well until combined. Let this mixture rest for about 1 minute.
Place the saucepan over medium heat. Bring the mixture to a boil, stirring constantly to ensure it doesn't stick or burn.
Once it reaches a full boil, continue to boil for exactly 1 minute, still stirring. Immediately pour the hot mixture into your prepared baking dish.
Transfer the baking dish to the refrigerator and chill until the gelatin is completely firm. This usually takes around 3 hours, but leaving it overnight ensures the best consistency.
Prepare a clean, large cutting board or flat surface by covering it with parchment paper. Sprinkle this paper generously with the remaining ½ cup of granulated sugar.
Once the gelatin is firm, gently loosen its edges from the baking dish using a spatula. Carefully invert the entire gelatin slab onto the sugar-coated parchment paper.
Grab your favorite small, sharp cookie cutters (festive shapes like stars or trees work great!) and press them into the gelatin to cut out individual gumdrops. If your cutters start to stick, you can briefly dip them in hot water or rinse them off.
Leave the cut gumdrops on the sugar-coated parchment paper for about 8 hours. This step allows them to dry out slightly and become less sticky.
Finally, roll each gumdrop in the sugar on the parchment paper until it's fully coated. Store your beautiful homemade gumdrops in an airtight container for lasting freshness.