Combine first 8 ingredients in heavy large saucepan. Bring to boil over medium-high heat, stirring until sugar dissolves. Boil until syrup is thick and mixture is reduced to 2 cups, about 12 minutes. Discard bay leaf; cool syrup.
Strain syrup into medium bowl. Add orange juice and lemon juice. Transfer to ice cream maker and process according to manufacturer's instructions. Transfer sorbet to container, cover, and freeze until firm, at least 6 hours and up to 3 days.
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