Peel and core apples; cut into 1/2-inch-thick slices.
Combine sugar, 1/2 cup sherry, water, and cinnamon in a large skillet. Cook over low heat 5 minutes. Add apple slices; cover and simmer 3 minutes or until apples are tender. Remove from heat; add remaining 1/4 cup sherry and lemon juice. Set aside to cool.