Preheat oven to 375 degrees F. Grease and flour two 8-inch round cake pans; set aside. In a medium bowl combine flour, baking powder, baking soda, and salt; set aside.
For cake, in a large bowl beat 2/3 cup butter with an electric mixer on medium to high speed for 30 seconds. Add 1 1/2 cups sugar; beat until well combined. Combine water, 1 tablespoon lemon peel, and 2 tablespoons lemon juice. Alternately add flour mixture and lemon mixture, beating well after each addition. Thoroughly wash beaters. In another medium bowl beat egg whites until stiff peaks form (tips stand straight). Fold about one-fourth of the egg whites into the butter mixture to soften; fold in remaining whites. Spread batter into prepared pans.
Bake for 30 minutes or until toothpicks inserted near centers come out clean. Cool cake layers in pans on wire racks for 10 minutes. Remove cake layers from pans. Gently prick layers with a long-tined fork. Spoon warm Lemon Syrup over cake layers.
For frosting, in a large bowl beat 1/2 cup butter on medium to high speed for 30 seconds. Beat in 3 cups powdered sugar; beat in 2 teaspoons lemon peel and 4 teaspoons lemon juice. Beat in remaining powdered sugar and enough milk to make spreading consistency.
Frost tops and sides of cake with lemon frosting. Garnish with fresh raspberries.
In a small saucepan combine sugar, water, and lemon juice; heat and stir just until warm and sugar dissolves. Set aside.