1. Preheat oven to 350°F.
2. Grease a 9x5-inch loaf pan.
3. Cream together sugar and butter with electric mixer until light and fluffy.
4. Add lemon peel and eggs; beat well.
5. In separate bowl, stir together flour, baking powder and salt; add to creamed mixture ALTERNATELY with milk, beating well after each addition.
6. Stir in nuts.
7. Pour into pan.
8. Bake for 50-55 minutes.