Drain cherries, reserving syrup.
Add enough water to reserved syrup to equal 1/2 cup liquid.
Combine 1/3 cup cherries with sour cream, sugar and coconut; mix well.
Pour into 1-quart souffle dish; freeze until firm.
Combine cherry syrup mixture and jelly in saucepan, stirring over medium heat until jelly is melted.
Add remaining cherries, lemon peel and juice; chill.
Serve sauce with cherry cream.