Step 1: Preheat the oven to 325F.
Step 2: In a large bowl, cream the butter and sugar until light and fluffy.
Step 3: In a separate bowl, beat the egg yolks until light and lemon colored.
Step 4: Blend the egg yolks into the creamed butter/sugar mixture.
Step 5: Sift the dry ingredients, then add them into the bowl in thirds, alternating with the milk.
Step 6: Add the vanilla, grated lemon peel and lemon juice - beat well for 2 minutes.
Step 7: Bake in a greased and floured Bundt pan for 45 minutes to 1 hour, or until the cake tests done.
Step 8: Cool in pan for 15 minutes , then invert onto a rack for complete cooling.
Step 9: Sprinkle the top with confectioners sugar, if desired.
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