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1. Allow butter and eggs to stand at room temperature for 30 minutes. Meanwhile, line forty-eight 1-3/4-inch muffin cups or eighteen 2-1/2-inch muffin cups with paper bake cups (or lightly coat with nonstick cooking spray). In a medium bowl combine flour, poppy seeds, baking powder, and salt. Set aside.
2. Preheat oven to 350 degrees F. In large mixing bowl beat butter on medium to high speed for 30 seconds. Add sugar, lemon extract, and vanilla. Beat about 2 minutes or until light and fluffy, scraping sides of bowl. Add eggs, one at a time, beating well after each addition. Alternately add flour mixture and milk to butter mixture, beating on low speed after each addition just until combined. Stir in the lemon peel and lemon juice.
3. Spoon batter into prepared muffin cups, filling each about three-fourths full. Use the back of a spoon to smooth out batter in cups.
4. Bake for 10 to 12 minutes for 1-3/4-inch cupcakes (16 to 18 minutes for 2-1/2-inch cupcakes) or until a toothpick inserted in centers comes out clean. Cool cupcakes in muffin cups on wire racks for 5 minutes. Remove cupcakes from muffin cups. Cool completely on wire racks.
5. Spread Lemon Glaze on cupcakes. If desired, top each cupcake with a lemon peel twist. Let stand for 10 minutes. Makes 48 (1-3/4 inch) or 18 (2-1/2 inch) cupcakes.
1. In small bowl combine powdered sugar and enough lemon juice to reach a spreading consistency. Stir in the lemon peel. Makes about 1/2 cup.