Place water and red hots into a medium size pan. Whisk water and red hots constantly over medium heat till red hots are completely dissolved (remember to keep whisking because red hots like to stick at the bottom of pan). Bring to a boil and add jello; stir to dissolve 2 minutes. Take off heat and add applesauce. Pour mixture into a 8x8 inch glass baking dish or medium size glass bowl. Chill 4-5 hours or till set. When jello has set, beat heavy cream with mixer till almost stiff. Add sugar and vanilla and beat till stiff. Top jello with whipped cream and serve.