make the grenadine. Combine pomegranate juice and sugar in a small saucepan and bring to a simmer over medium heat. Stirring until sugar is dissolved. Let simmer for 5 minutes. Add the orange peel and let simmer 5 more minutes or until thick. Remove from heat and let cool. Remove orange peel and pour into a tightly-sealed container. Grenadine will keep for 1 month in the refrigerator. 

make the tequila sunrise. Combine orange juice and tequila in a cocktail shaker filled with ice. Shake vigorously for 15 seconds. Strain into a cocktail glass. Add grenadine by spooning into the bottom of the glass. Garnish with the orange wedge and cherry and enjoy!