Heat oven to 325 degrees F. Combine sugar and butter in large bowl. Beat at medium speed until creamy. Continue beating, adding eggs one at a time, until well mixed. Reduce speed to low; gradually add flour, baking powder, baking soda and salt alternately with buttermilk until well mixed. Stir in lemon peel and 1 tablespoon lemon juice.
Spread batter into greased and floured 12-cup Bundt pan. Bake for 55 to 65 minutes or until toothpick inserted in center comes out clean. Cool 10 minutes; remove from pan. Cool completely.
Stir together powdered sugar, 2 teaspoons lemon juice and enough milk for desired glazing consistency in small bowl. Drizzle over cooled cake.