Steps:
- For cake:
- Preheat oven to 325°F. Butter two 8-inch-diameter cake pans with 2-inch-high sides. Line bottom of pans with parchment paper. Butter parchment.
- Beat butter and sugar in medium bowl until well blended. Add eggs 1 at a time, beating well after each addition. Mix in lemon peel. Beat in flour alternately with lemon juice in 2 additions each. Divide batter between prepared pans. Bake until cakes begin to pull away from sides from pan and tester inserted in center of cake comes out clean, about 28 minutes. Cool cakes in pans on racks 2 minutes. Turn cakes in pans on racks 2 minutes. Turn cakes out onto racks and cool completely. Peel off parchment.
- For lemon curd:
- Whisk eggs and sugar in top of double boiler to blend. Add lemon juice, butter and lemon peel. Set pan over simmering water (do not allow bottom of pan to touch water). Whisk until mixture thickens to pudding consistency and thermometer inserted into mixture registers 165°F., about 4 minutes. Remove from over water; cool. Press plastic wrap directly onto surface of curd; chill until cold. (Cake and lemon curd can be made 1 day ahead. Cover cake and store at room temperature. Keep lemon curd chilled.)
- Place 1 cake layer on platter. Spread lemon curd evenly over. Top with second cake layer. Place decorative stencil or doily atop cake. Sprinkle heavily with powdered sugar. Carefully remove stencil. Serve cake with whipped cream, if desired.
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