Heat oven to 325 degrees. Grease and flour a 10 cup bundt pan.
In a large bowl, mix sugar, butter and cream cheese until very light and fluffy.
Add eggs, lemon peel and vanilla; mix well.
Add all remaining cake ingredients; mix well. Spoon into prepared pan.
Bake at 325 degrees for 50 to 55 minutes or until toothpick inserted in center of cake comes out clean. Cool 10 minutes. Remove from pan; invert onto serving plate.
Glaze: In small bowl, mix sugar and butter. Gradually add lemon juice until desired consistency; mix until smooth. Stir in lemon peel; drizzle over warm cake. Garnish with lemon slices or lemon peel if desired.