Stir together first 5 ingredients in a large saucepan; bring to a boil over medium-high heat, stirring often.
Reduce heat; simmer, stirring often, 15 minutes or until cranberries pop and mixture starts to thicken. Remove from heat, and stir in sweetened dried cranberries. Cool. Cover and chill until ready to serve.
Note: Mixture can be stored in the refrigerator for up to 2 weeks.
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I usually make a homemade cranberry sauce for Thanksgiving that most people pass up for the canned variety, so I decided to try this recipe this year. I did not have a lemon, so I subbed 1/2 cup or orange juice for the lemon and water. The flavor came out great, but I wasn't happy with the texture of the apples. If I make again, I might try blending it.
My family seems to be a canned cranberry sauce family. I tried making this recipe to entice them to fresh cranberry sauce this year, but it didn't go very well. This recipe makes a large portion. I thought it was fine, but there weren't a lot of second-helpings by other people.