Place washed and coarsely sliced apples into a heavy skillet, add washed cranberries and water. Bring to boil and simmer mixture for 20 minutes. Crush with potatoe masher and cook 5 more minutes or until all fruit is tender. Remove from heat, pour into a jelly bag and let drain overnight. Measure juice into skillet (should be 4-5 cups), add equal amount of white sugar, stir and bring to a boil; boil rapidly under-stirring until the jelly sheets (220 degrees F on candy thermometer). Remove from heat, skim foamy parts and pour into hot, sterilized jars. Seal with parrafin.