1/2 cup butter, softened
1 cup granulated sugar
2 large eggs
1 1/2 cups all-purpose flour
1 teaspoon baking powder
1/2 teaspoon salt
1/2 cup milk
2 tablespoons lemon rind, divided
1 cup powdered sugar
2 tablespoons fresh lemon juice
1 tablespoon granulated sugar
Beat softened butter at medium speed with an electric mixer until creamy. Gradually add 1 cup granulated sugar, beating until light and fluffy. Add eggs, 1 at a time, beating just until blended after each addition.
Stir together flour, baking powder, and salt; add to butter mixture alternately with milk, beating at low speed just until blended, beginning and ending with flour mixture. Stir in 1 tablespoon lemon rind. Spoon batter into greased and floured 8- x 4-inch loafpan.
Bake at 350° for 1 hour or until a wooden pick inserted in center of bread comes out clean. Let cool in pan 10 minutes. Remove bread from pan, and cool completely on a wire rack.
Stir together powdered sugar and lemon juice until smooth; spoon evenly over top of bread, letting excess drip down sides. Stir together remaining 1 tablespoon lemon rind and 1 tablespoon granulated sugar; sprinkle on top of bread.
Lemon-Almond Tea Bread: Stir 1/2 teaspoon almond extract into batter. Proceed as directed.