Combine 1 cup sugar and 1 cup water in a small saucepan. Bring to a boil over medium high heat and cook until sugar is dissolved and liquid is clear, about 3-5 minutes. Keep hot.
Place 1/2 cup cold water in a medium bowl and sprinkle over the gelatin powder. Let sit for about 5 minutes, then whisk in the hot sugar and water mixture until smooth. Stir in the lemon juice, vodka and yellow food coloring. Transfer to a measuring cup or vessel with a spout.
For the Pink Lemonade Drop:
Place pink lemonade in a medium saucepan and bring to a simmer. Place 1/2 cup cold water in a medium bowl and sprinkle over the gelatin powder. Let sit about 5 minutes, then whisk in the hot pink lemonade until smooth. Stir in the vodka and pink food coloring. Transfer to a measuring cup or vessel with a spout.
Place 20-24 2-ounce clear shot cups on a tray and fill each half way with the Lemonade Drop. Place in the refrigerator until mostly set, about 1 1/2 hours. Do not refrigerate the pink lemonade drop mixture.
When the lemonade drop is set, fill the glasses almost to the rim with the pink lemonade drop. Use a thick wooden skewer or small spoon to cut through the set lemon jello, mixing to make a tie dye pattern. Return to the refrigerator until set, about 3-4 hours.
Place 1/2 cup sugar in a strainer set over a bowl. Add the yellow food coloring and use a spoon or rubber spatula to mix into the sugar as it falls through the strainer. Mix the sugar in the bowl until it turns yellow.
Dip the rind of the lemons in the sugar and place the lemon wedges on the edge of the cups to serve.