Use firm crisp apples, such as golden delicious, Rome or other apples of similar quality.
Wash, peel and core the apples. Slice them about 1/2 inch wide and place in water containing ascorbic acid to prevent browning. Blanch 2 quarts at a time for 1 minute in boiling water. While blanching other apples, keep ones already blanched in covered pot to keep warm.
Combine the sugar, clear gelatin and cinnamon in large pot with the water and apple juice, food coloring and nutmeg. Stir and cook on medium high heat until the mixture thickens and begins to bubble.
Drain the apple slices from the water, reserving water.
Add lemon juice to water mixture and boil 1 minute more. Fold in the apple slices immediately and fill jars with mixture. Clean the rims and seal the jars.