Preheat oven to 350. Line 24 cupcake tins with paper liners.
In a medium bowl, combine cake mix and water. In a small bowl, combine applesauce, lemon zest and 1 tablespoon of lemonade mix; add to cake mixture. Mix well.
Spoon batter evenly into cupcake liners. Bake for 15-17 minutes. Remove from oven and allow to cool completely.
For frosting, combine the remaining lemonade mix with the whipped topping using a hand mixer. Refrigerate for 30 minutes. Remove from refrigerator and frost cupcakes.