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1. Preheat the oven to 350°F. Using a pastry brush, coat the bottom and sides of a 9-by-5-by-3-inch loaf pan with 1 tablespoon of the softened butter.
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2. Sprinkle the pan with 2 tablespoons of the flour, tipping it from side to side to coat it evenly. Then invert the pan and rap it on a table to remove any excess. Set aside.
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3. In a large bowl, cream the remaining ˝ pound of butter and 1 cup of the sugar together by mashing and beating them against the sides of the bowl with a large spoon until light and fluffy.
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4. Then beat in the eggs, add the grated lemon peel, and continue beating until smooth. Combine the 2 cups of flour and the baking powder, and sift them into the egg-and-sugar mixture, ˝ cup at a time, beating well after each addition.
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5. Pour the batter into the prepared pan, smooth the top with a spatula, and bake in the middle of the oven for 30 minutes. Sprinkle the candied peel evenly over the cake, and dust the entire surface with the remaining 2 tablespoons of sugar.
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6. Return the pan to the oven and bake for 30 minutes longer, or until a cake tester inserted in the center comes out clean. Let the cake cool for 5 minutes before removing it from the pan. Then allow it to cool completely on a cake rack.
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7. Madeira cake is served unfrosted, usually at afternoon tea. Its name derives from the traditional practice of serving it with a glass of Madeira.
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