Preheat oven to 350 degrees F. Grease three 9 inch cake pans and dust with flour. Set aside.
In large mixing bowl cream butter. Add sugar, mix well. Add eggs one at a time, mix well. Add 1 1/2 cups flour with half of baking powder and half of salt with 1 cup of milk; mix well. Add remaining flour, salt and baking powder with 1 cup milk; mix well. Add lemon and vanilla and mix 3 minutes.
Pour batter into cake pans and cook for 30 to 40 minutes. Remove from oven and let stand on counter for 5 minutes. Remove from pans and cool on wire rack. To assemble cake, put 1 layer on cake plate and frost. Repeat. Serves 8 to 10.