Cook sugar and 1 cup water, stirring constantly, in a small saucepan over low heat until sugar has dissolved. Add mint. Bring to a boil. Remove from heat. Cover, and leave to stand.
Working in batches, puree watermelon in a blender. Pour through a fine sieve into a large bowl; discard solids.
Pour mint syrup through a fine sieve into a bowl; discard mint. Stir syrup into puree. Stir in lime juice.
Refrigerate, covered, at least 2 hours (up to overnight).
Freeze in an ice cream maker according to manufacturer's instructions.
Transfer to an airtight container; freeze at least 1 hour (up to 4 days).
Let stand at room temperature 10 minutes before serving.
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