Preheat oven to 350 degrees F.
Meanwhile, in a medium saucepan, over medium high heat, combine the apricots, sugar and 2 1/2 cups of water. Bring to a simmer and cook for 35-40 minutes, stirring frequently, until apricots are tender (yet chewy) and are just starting to fall apart. Combine the cornstarch and remaining 3 tablespoons of water and stir into apricot mixture. Continue to cook for an additional 5 minutes or until thickened. At this point, add more water, if needed, to reach desired consistency. Remove from heat and stir in cranberries and extract. Cool.