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Cook onion in reserved drippings till tender nut nor brown. Stir in orange peel, orange juice, dry sherry, sugar, lemon juice, bay leaf, 1/4 teaspoon salt and dash of pepper.
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To make orange sauce, skim excess fat from pan juices. Measure pan juices; add enough water, if necessary, to make 1 1/2 cups.
Combine cornstarch and cold water; stir into reserved pan juices.
Cook and stir until thickened and bubbly. Cook and stir 2 minutes more.
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