Wash and core apples; do not peel. (LOVE THAT IN A RECIPE.) Cut apples in thick slices. Combine apple slices with sugar in a large saucepot, stirring gently to coat apples. Let sit 20 minutes. Stir in dried cherries, raisins, lemon peel, cinnamon, and nutmeg. Add water and lemon juice. Bring to a boil then reduce heat and simmer 5 minutes. Pack hot fruit in jars. Ladle hot syrup over fruit, leaving a full inch headspace. (Be SURE to leave good headspace on this recipe–the dried fruit will swell during processing.) Remove air bubbles. Adjust two-piece lids. Process pints and quarts 20 minutes in a hot water bath.