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Place sugar in resealable plastic bag. Add 5 drops of food color for pale colors. Add more food color, a drop or two at a time, if more intense color is desired. Seal bag and knead gently until color is evenly distributed.
Spread in a thin layer on a baking sheet and break up any large lumps. Allow to dry thoroughly, about 15 to 20 minutes. Sift or press through a sieve to return sugar to its original texture, if needed.
Sprinkle onto cookies or cakes before baking, or sprinkle onto cooled, freshly iced baked cookies or cakes.