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In a large mixing bowl, beat the butter until creamy.
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Gradually beat in the sugar, beating until the consistency of thick whipped cream.
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Beat in the eggs, one at a time, beating well after each addition.
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Stir together the flour, baking powder, salt and nutmeg.
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Stir into the creamed mixture alternately with the milk.
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Stir in the lemon rind and vanilla.
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Fold in the blueberries.
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Spread in a greased 9" x 13" cake pan.
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Bake in a 350 degree F oven for 40 to 45 minutes or until golden and the cake tester inserted in the centre come out clean.
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Let stand in the pan for 5 minutes.
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If making the glaze, stir together the sugar and lemon juice.
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Let it stand for 20 minutes.
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Spoon over the warm cake and spread evenly.
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Let cool completely in the pan on a rack.