One of my all-time favorites, this is one is easy on the diet. You can top this homey dessert with green grapes and orange slices for a pretty presentation. You can also use the lemon sauce over angel food cake or your favorite frozen yogurt.
Whisk milk, sugar, tapioca, and lemon peel in heavy medium saucepan to blend. Let stand 5 minutes. Stir over medium heat until mixture thickens and boils, about 5 minutes. Remove from heat. Stir in vanilla. Cover and chill until cold, at least 4 hours. (Can be prepared 1 day ahead. Keep refrigerated.
To make sauce, whisk sugar and cornstarch in small saucepan to blend. Add 3/4 cup water. Whisk over medium-high heat until mixture thickens and boils, about 2 minutes. Stir in lemon juice, lemon slices and grated peel. Cool. (Can be prepared 1 day ahead. Cover and chill. Bring to room temperature before serving.).
To serve, spoon pudding into small bowls. Spoon Lemon Sauce over and serve.