Heat oven to 325°F. Grease and flour 12-cup fluted tube cake pan, or spray with baking spray with flour.
In large bowl, beat cake mix, pudding mix, water, softened butter, orange peel and eggs with electric mixer on low speed 30 seconds, scraping bowl constantly, then on medium speed 2 minutes, scraping bowl occasionally. Fold in cranberries. Add to prepared pan.
Bake 57 to 65 minutes or until toothpick inserted in center comes out clean. Cool 15 minutes; remove from pan. Cool completely, about 1 hour.
Prepare sugared cranberries while cake cools. In a medium saucepan, combine 1/2 cup water and 1/2 cup sugar. Bring to a boil and let it simmer on low heat for 3 minutes.
Stir in the cranberries to fully coat in the syrup then remove from heat and stir 1 minute.
Remove cranberries with a slotted spoon and transfer to a parchment lined baking sheet or a metal rack to let cranberries dry out for 1 hour.
Roll cranberries in batches in the remaining 1 cup sugar to coat.