In a large bowl beat 1 cup ice-cold whipping cream, 2 tablespoons powdered sugar, 1 tablespoon finely shredded lemon peel, and 2 teaspoons lemon juice with an electric mixer or large whisk until soft peaks form. Cover and chill up to 4 hours ahead. Whisk before serving.
Remove peel from 1 to 2 meyer lemons using a vegetable peeler. Cut the peel into thin strips. Place in a small bowl. Sprinkle with 1 to 2 tablespoons sugar; toss to coat. Let stand for 1 to 4 hours, tossing occasionally. Pile lemon peel strips atop cake just before serving.
Divide batter between 2 8x1 1/2-inch round cake pans, filling about each about 1/2 full. Bake in a 350°F oven for 25 to 30 minutes or until a toothpick inserted near centers come out clean. To assemble, place one cake layer on serving platter. Spread with 1 cup of the whipped cream mixture. Top with remaining cake layer. Spread sides with 1/2 cup of the cream, forming a light crumb coating. Spread any remaining cream atop the cake. Garnish with lemon peels, if desired.
Loosely cover and store frosted cake in the refrigerator for up to 3 days. OR wrap unfrosted baked cake layers and freeze for up to 1 month. Thaw and frost as directed above.