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Cranberry Sauce with Port and Cinnamon

['1 cup ruby Port', '2 cinnamon sticks, broken in half', '1 cup dried cranberries (about 6 ounces)', '1 12-ounce bag fresh cranberries', '3/4 cup water', '1/4 cup sugar']

Bring ruby Port and broken cinnamon sticks to boil in heavy medium saucepan. Reduce heat to medium and simmer mixture 5 minutes.
Add dried cranberries to saucepan; simmer until slightly softened, about 3 minutes. Add fresh cranberries, 3/4 cup water, and sugar; bring to boil, stirring until sugar dissolves. Reduce heat to medium-low; cover and simmer until cranberry sauce thickens and is darker in color and berries collapse, stirring often, about 20 minutes. Transfer sauce to bowl; cool. Discard cinnamon sticks. DO AHEAD: Can be made 3 days ahead. Cover and chill. Bring to room temperature before serving.

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