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1. In a small saucepan, bring sugar and the water to boiling, stirring to dissolve sugar. Cover and chill overnight or place saucepan in a bowl of ice and stir mixture until completely chilled.
2. Stir in the 1 tablespoon lemon peel and the lemon juice. Pour lemon mixture into the bowl of a 1-quart ice cream freezer.** Freeze according to the manufacturer's instructions.
3. Transfer to a nonmetal container; ripen in freezer for 4 hours. Let stand at room temperature for 5 minutes before serving. If desired, garnish individual servings with additional lemon peel.