In a saucepan, mash the sugar, lemon peel and 1/4 cup water with a wooden spoon for a minute or so. Add the half-and-half and bring to a simmer over medium-low heat for about 5 minutes. Remove from the heat, cover and let steep for 20 minutes.
Lightly oil eight 4-ounce custard cups or ramekins and place on a tray. In a small bowl, sprinkle the gelatin over 1/2 cup water and let soften for 5 minutes. Whisk the softened gelatin into the hot lemon cream until completely dissolved. Stir in the heavy cream.
Strain the mixture into a large liquid measure or pitcher, pressing firmly on the solids; discard the solids. Pour the lemon cream into the custard cups, cover and refrigerate until set, about 5 hours.
To serve, loosen the custards from the cups with a small knife and invert onto dessert plates. Sprinkle with the pomegranate seeds.