To make the sugar, all I needed was a plastic bag, granulated sugar, and food coloring. I put some sugar in the bag along with a few drops of food coloring. I closed the bag and then shook it. My sugar did clump a little, so I had to massage the clumps a little. I also had to work the sugar a little to get a uniform color. On the first go around, I wasn't satisfied with the color. I added another couple of drops of food coloring. After shaking, voila, beautiful, red sugar!
My daughter and I used our sugar to decorate some cupcakes for our Christmas party. I like the color of the sugar better than that of bottled colored sugar. Using this method, you can adjust your color to your own likes and come up with some unique combinations. Mom on Timeout also points out that you can use Sugar in the Raw to make coarser sugar. This is a great trick to know! Thanks Mom on Timeout!