In a large bowl, whisk together 1 cup (250 mL) sugar with flour and salt.
In a separate large bowl, whisk milk, butter and egg yolks. Stir milk mixture into flour mixture. Whisk in lemon rind and juice. Set aside.
In a separate bowl, beat egg whites until soft peaks form. Add remaining ¼ cup (50 mL) sugar, 1 tbsp (15 mL) at a time, until stiff but still moist peaks form.
Fold beaten whites into lemon mixture to ensure the batter stays light and fluffy.
Scrape mixture into a greased 8-inch (2 L) square glass baking dish. Place glass baking dish in a larger shallow pan. Pour in enough hot water to come halfway up sides of glass baking dish. Bake in 350°F (180°C) oven until cake is light golden, fluffy and springs back when touched lightly in center, about 45 minutes. Remove from water bath and let glass baking dish cool on a rack for 10 minutes.
Spoon into serving dishes. Garnish with whipped cream.
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