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Put egg yolk in a mixing bowl and beat until light; gradually add the sugar and milk while beating continuously.
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Sift your flour, baking powder, and salt together; set aside.
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Beat egg white until stiff; fold dry ingredients into egg white.
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Add egg white mixture and flavoring to sugar-milk mixture, blending well.
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Pour batter in a prepared 8-inch square pan.
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Bake at 375 degrees ("a moderately hot oven") for 30 minutes.
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Icing: Warm the 2 tablespoons evaporated milk in a small saucepan, and add the 3/4 teaspoon lemon extract and 1 cup powdered sugar.
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Top on cake.
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If you'd like, you can color the icing with food coloring.