Begin by preparing an 11x7 or 9x13-inch baking dish. Spray it generously with non-stick cooking spray and set aside for later use.

In a large saucepan, combine 2 cups of sugar, the applesauce, flavored jello, and unflavored gelatin. Stir the mixture thoroughly and let it rest for about one minute to allow the gelatin to bloom.

Place the saucepan over medium heat and bring the mixture to a boil, stirring continuously to prevent sticking. Once it begins to boil, allow it to cook for exactly one minute. Immediately pour the hot gelatin mixture into the prepared baking dish, spreading it evenly.

Let the mixture cool at room temperature for about 15 minutes. Then, transfer it to the refrigerator and chill for a minimum of 3 hours, or until the gelatin has completely set.

Prepare a large cutting board by lining it with parchment paper and sprinkling it generously with sugar. Use a metal spatula to gently loosen the gelatin sheet from the edges and bottom of the baking dish. Carefully transfer the gelatin to the prepared cutting board. You can move the entire sheet at once or cut it into 6–8 large sections and transfer them individually.

Using mini cookie cutters, cut the gelatin into festive shapes and place them back onto the parchment-lined baking sheet. Allow the gumdrops to sit at room temperature for at least 8 hours or overnight to develop their texture.

Pour the remaining granulated sugar into a shallow bowl. Roll each gumdrop shape in the sugar, ensuring they are evenly coated. Your Christmas Gumdrops are now ready to serve or gift!