Preheat oven to 325 F. Blend well the butter and 1 cup sugar. Beat in eggs, one at a time. Add extract and mix. Sift together dry ingredients and add to egg mixture alternately with milk. Blend just to mix and fold in lemon peel and nuts. Turn into a buttered and lightly floured loaf pan. Bake for about 70 minutes until done in the center. Mix lemon juice and 1/4 cup sugar and immediately spoon over hot bread. Let cool 10 minutes. Remove from pan and immediately turn upright. Cool on a rack. Wrap in plastic wrap and do not cut for 24 hours. It freezes well when wrapped in plastic wrap and foil.
