Meanwhile, place 2 tablespoons water in 2-quart saucepan; sprinkle gelatin over water. Let stand 1 minute to soften. Spoon cranberry sauce and 1/2 cup sugar over gelatin. Heat to rolling boil over medium-high heat. Cook over medium-high heat, stirring frequently, until gelatin is completely dissolved. Stir in orange peel. Cool at room temperature 20 minutes. Cover; refrigerate 1 hour 30 minutes to 2 hours, stirring every 30 minutes, until mixture is slightly thickened.