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Set oven to 350 degrees (second-lowest rack).
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Grease and flour two 8-inch round cake pans.
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In a mixing bowl beat beat the egg whites with 1/3 cup sugar until thick and glossy but not stiff.
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In a large bowl combine cake flour, 1-1/4 cups sugar, baking powder and salt.
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Add in orange peel, orange juice, milk, oil and egg yolks; mix at medium speed for 5 minutes.
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Fold in egg whites into batter until well blended.
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Divide the batter between the two pans.
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Bake for about 25-30 minutes, or until cake tests done.
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Cool completely, then fill and frost with orange or vanilla frosting.