Heat apple wedges with water and lemon juice in medium-sized saucepan to boiling. Stir in sugar, cinnamon and red cinnamon candies. Cook, stirring constantly, until sugar and candies dissolve. Remove from heat, cover and refrigerate.
Stir in horseradish before serving. Serve cold or at room temperature. Sauce can be made up to three days ahead of time, covered and refrigerated. Makes 2 cups.
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