Place the candy and water in a pot. Bring to a boil, stirring to dissolve the candy. Add jello powder and stir until it is dissolved.
Stir in applesauce and ice cubes until ice cubes are melted. Pour into a bowl and refrigerate until set (1 hour or more).
NOTES: Applesauce jello salad -- A delicious jello salad, taken from The Monterey Coast Guard Officers' Wives Club Cookbook. My sister-in-law was the president of the club which put that cookbook together.
* Substituting apple cider or apple juice for the water adds tremendous taste. We prefer homemade chunky style applesauce to processed commercial brands.