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In a small mixing bowl, cream butter and sugar until light and fluffy, about 5 minutes.
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Add eggs, one at a time, beating well after each egg addition.
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Stir in the applesauce, vanilla and lemon peel.
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Combine the flour, baking powder and salt together and add to the creamed mixture just until blended.
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Transfer to an 8" loaf pan which has been sprayed with non-stick cooking spray.
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Bake at 350F for 45-55 minutes or until golden brown and cake tester inserted comes out clean.
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Cool for 10 minutes before removing to a wire rack to cool completely.