Spray a 11-inch x 17-inch baking dish with non-stick cooking spray.
In a large saucepan, combine 2 cups granulated sugar, applesauce, Lime JELL-O, unflavored gelatin, and lemon juice; let stand for a 1 minute. Bring mixture to a boil over medium heat, stirring constantly. Boil for 1 minute and then remove from heat.
Pour into the prepared 11-inch x 7-inch baking dish. Refrigerate for approximately 3 hours or until firm.
Layer the 1/2 cup granulated sugar on the bottom of a cookie sheet.
To cut gum drops: After the mixture is firm, using a rubber spatula, loosen gelatin from sides of dish. Invert onto the prepared cookie sheet that has a layer of granulated sugar on it. Sprinkle sugar over the top of the gum drops. Dip knife into hot water and cut into squares. Save the remaining sugar for later.
Let dry at room temperature at least 8 hours.
After drying, roll the gum drops in the remaining sugar you have set aside.
To store, place gumdrops in an air-tight container.
* Jell-O is a brand name belonging to Illinois-based Kraft Foods.
Homemade Lime Gum Drops Recipe: https://whatscookingamerica.net/candy/lime-gumdrops.htm