The toy was a plastic ball with holes all over it. You put a water balloon in it and set the timer then played "hot potato" with it. I'm trying to find one, but I don't know what it is called.

The only name that comes to mind for me is Cool Potato. But I can't seem to find anything on the internet about it. Except for at this webpage:
Balloon HQ presents: Balloon Games and Toys (http://www.balloonhq.com/faq/games.html#Anchor-Cool-54995)

I hope that helps a little bit