Prepare pans by lining them with plastic wrap and vegetable spray. I used three 8x8 oven pans and two bread loaf pans.
Place cold water in a bowl and sprinkle gelatin over top. Stir slightly to get all powder incorporated. Set aside
In a medium saucepan bring 2 1/2 cups of water to a boil. Add sugar and stir. Let simmer, stirring until all sugar is dissolved.
Add gelatin mix to the sugar and water mix. Once all the ingredients have dissolved bring back to a boil and cook for 2-3 minutes.
Remove from heat and let cool for about 1-2 minutes.
Divide mixture into 5 bowls. Add one packet of drink mix to each bowl. If using extract add 3 teaspoons and enough drops of food coloring to get the color you wish. I used 5 drops of green for the lime candy.
Mix with a wire whisk to ensure all the drink mix is dissolved.
Pour into prepared pans and refrigerate overnight.
Place a nice layer of sugar on parchment and flip the jelly candy on top. Then move to a new piece of parchment and use a pizza cutter to cut into small square or rectangular shapes.
Let sit overnight. Then coat the bottoms of the candy in more sugar and let sit out overnight again with the newly coated side up.
Place in bags or airtight containers.