Heat oven to 350; if using dark pan heat to 325.Grease bottoms and sides of two 9 inch round cake pans;and lightly flour.
In large bowl beat cake mix,1 1/4 cups water,the oil,eggs and 1 box gelatin dry with electric mixer on low 30 seconds.Beat on medium 2 minutes.Divide batter between pans.
Bake 33 to 35 minutes.Cool 10 minutes.Run knife around side of pans to loosen cakes;remove from pans to wire rack.Cool completely about an hour.
In 2-cup microwavable bowl or measuring cup,stir 1 box dry gelatin into 1/4 cup water.Microwave uncovered on high 1 minute 30 seconds,stirring 2 to 3 times to dissolve gelatin until mixture boils.In large bowl beat gelatin mixture ,powdered sugar,butter,lemon juice and 2 teaspoons water on low speed until frosting is thick but speadable.Add additional 1 tsp. water if needed.
On serving plate place 1 cake down;spread with 1/2 cup frosting.Drop 2 drops red and 1 drop yellow food coloring on frosting;Swirl with spatular to create deep orange.Top with other cake.
Reserve 1/2 cup frosting. Frost side and top of cake with remaining frosting.Add 2 drops red and yellow food coloring to reserved frosting.Swirl around cake.Sprinkle with sugar.Decorate with peach candies.