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Preheat oven to 350°F.
Grease and flour or use pan spray with flour to prepare pan.
Cream sugar and butter in mixer bowl until light and fluffy.
Add eggs, vanilla and lemon extract, mix until smooth. Add flour and baking powder, mix 30 seconds, add lemon zest, and mix 1 minute more.
Pour batter into prepared pan.
Bake 50-55 minutes or until toothpick inserted in middle comes out clean. Cool 10 minutes on cooling rack.
Remove from pan and cool completely before serving. Dust with powdered sugar.