Jelly also works as an EXCELLENT flavor addition to buttercream frosting or icings. Because of the pectin and viscosity of the jelly, you can add it without having to adjust the recipe in other ways to compensate. It is one of my favorite "cheats". I also add jelly as a flavoring to toppings like whipped cream or marscapone cream. Recently won a cooking competition with a "Pomegranate-Orange Marscapone" topping to dark chocolate mousse where the Pom-Orange came from a Pom-Orange jelly.
I'd suggest perhaps using some type of preserves rather than jelly. I often swirl preserves into muffin batters, so I suspect it would work well in cake batter also. Preserves are going to swirl in better than jelly; think of jelly's "chunky" consistency compared to smoother preserves.
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Congratulations on the win and thanks for that tip. Maybe that was one of the reasons I liked that cake so much.
You can spread jelly like frosting between layers. The best cake I've ever eaten was done that way, liliko'i jelly, I'll never forget it.