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1/2 cup butter, softened
1-1/4 cups sugar
1 (8 ounce) package cream cheese, softened
2 eggs
2-1/4 cups all purpose flour
3 tsp baking powder
1 tsp salt
1 (5-1/2 ounce) can evaporated milk
1/4 cup water
1/2 cup pecans, chopped
2 Tbsp grated lemon rind
1/3 cup sugar
1/4 cup lemon juice
Preheat oven to 350 degrees F.
Cream butter, sugar, and cream cheese until light and fluffy. Add eggs, one at a time, beating thoroughly after each one. Mix together flour, baking powder and the salt, and add alternately with milk and water, blending well after each addition. Fold in nuts and lemon rind.
Pour into a greased and floured 9x5x3" loaf pan. Bake at 350 degrees about 1 hour or until golden brown. Stir sugar with lemon juice until dissolved. Drip over hot loaf. Let stand in pan for 30 minutes, and finish cooling on a wire rack.