Soften the gelatin in 1/2 (125 ml) cup cold water for 5 minutes. Place over boiling water and stir until dissolved. Remove from heat and add sherry. Chill for 30 min. or until the mixture begins to thicken. Beat the egg whites until foamy.
Add 1/2 cup (125 ml) sugar gradually, beating constantly. Add lemon juice and beat until stiff but not dry. Beat egg yolks until frothy, add 1/4 cup (60 ml) sugar gradually, and beat until thick and lemon colored. Add gelatin mixture to egg yolks gradually and beat until thick and light in color.
Fold whites into this mixture. Whip cream and fold into egg mixture. Pour into collared 7 in. souffle dish lined with lady fingers. Chill for 3 hours or until firm. Serve with additional whipped cream if desired.