Butter a 2 Quart Bundt or Kugelhopf pan.

Dust the pan with finely chopped walnuts.

Preheat oven to 300°F.

Sift together the flour, baking powder, and salt in a bowl.

Set the dry ingredients aside.

In a large mixing bowl, cream together the butter, cream cheese, lemon rind, and sugar.

Beat the mixture until smooth and well combined.

Beat in the eggs one at a time, ensuring each egg is fully incorporated.

Note that the batter may appear slightly curdled, which is normal.

Gradually add the dry flour mixture to the batter, mixing until just combined.

Stir in the medium chopped walnuts.

Pour the batter into the prepared Bundt pan.

Bake for about 1 hour and 20 minutes, or until a knife inserted into the center comes out clean.

Cool the cake on a wire rack.

Serve at room temperature.