Heat oven to 350 degrees. Generously grease 12-cup fluted tube cake pan with shortening.
In large bowl, beat 1 cup butter and 2 cups sugar with electric mixer on medium speed until light and fluffy, scraping bowl occasionally. Add eggs, one at a time, beating well and scraping bowl after each addition. Beat in lemon peel. On low speed, beat in flour, baking powder, salt, baking soda and milk until smooth, scraping bowl occasionally. Pour batter evenly into pan.
Bake 35 to 50 minutes or until toothpick inserted near center comes out clean. Cool upright in pan 15 minutes.
Meanwhile, in a 1-quart non-aluminum saucepan, mix glaze ingredients. Heat over medium heat, stirring occasionally, until butter melts.
Place serving plate upside down over pan; turn plate and pan over. Remove pan. With long-tined fork or skewer, generously prick top and sides of cake. Brush warm glaze over cake, allowing glaze to soak into cake. Cool completely, about 1 hour 30 minutes.