Preheat oven to 190 degrees C. Grease and flour a loaf tin.
Mix together flour and baking powder then set aside. In a different bowl, cream together 1 cup of sugar and the butter. Mix in one egg at a time then add the lemon peel and milk. Combine with the flour. Pour into greased loaf thin then bake in preheated oven for 1 hour.
In a small saucepan combine 1/2 cup sugar with the lemon juice then stir until thick. Drizzle over the finished loaf.
I wish I would have checked on this loaf sooner, as it cooked A LOT faster than the directions suggested. I would keep checking it after the 35 minute mark!
Otherwise, delicious. Made as is... tasted much better the next day! (Did not like it straight from the oven.) I will probably make a glaze with caster sugar and lemon juice (no heat) instead! - 09 May 2013