In a small bowl, sprinkle gelatin over 1/2 cup water; let stand 5 minutes. In a small saucepan, bring sugar and remaining water to a boil over medium heat, stirring constantly. Add gelatin; reduce heat. Simmer 5 minutes, stirring frequently. Remove from heat; stir in extract and food coloring as desired., Pour into a greased 8-in. square pan. Refrigerate, covered, 3 hours or until firm., Loosen edges of candy from pan with a knife; turn onto a sugared work surface. Cut into 1-in squares; roll in sugar. Let stand, uncovered, at room temperature until all sides are dry, turning every hour, 3-4 hours. Store between layers of waxed paper in an airtight container in the refrigerator.