1Move oven rack to lowest position. Heat oven to 325°F. In large bowl, mix flour, sugar, baking powder and salt. Beat in cold water, oil, vanilla, lemon peel and egg yolks until smooth.
2In large bowl, beat egg whites and cream of tartar with electric mixer on high speed until stiff peaks form. Gradually pour egg yolk mixture over beaten egg whites, folding with rubber spatula just until blended. Pour into ungreased 10-inch angel food (tube) cake pan.
3Bake about 1 hour 15 minutes or until top springs back when touched lightly. Immediately turn pan upside down onto heatproof funnel or bottle. Let hang until completely cool, about 2 hours. Loosen side of cake with knife or long, metal spatula; remove from pan.
4In 1 1/2-quart saucepan, melt butter over low heat; remove from heat. Stir in powdered sugar and lemon peel until smooth. Stir in lemon juice, 1 tablespoon at a time, until smooth and consistency of thick syrup. Spread glaze over top of cake, allowing some to drizzle down side.