Let eggs stand at room temperature for 30 minutes. In a large mixing bowl, combine the flour, sugar, baking powder, and salt. In another bowl, whisk the egg yolks, water, oil, lemon peel, and vanilla, add to dry ingredients. Beat until well blended.
In another large mixing bowl, beat egg whites and cream of tartar on medium speed until soft peaks form, fold into batter. Gently spoon into an ungreased 10 inch tube pan. Cut through batter with a knife to remove air pockets.
Bake on the lowest oven rack at 325 degrees for 50-55 minutes or until top springs back when lightly touched. Immediately invert the pan, cool completely, about 1 hour.
Run a knife around side and center tube of pan. Remove cake to a serving plate. In a small mixing bowl, combine frosting ingredients, beat until smooth. Spread over top of cake.
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