PREHEAT oven to 350° F. Grease and flour two 6-cake mini Bundt pans.
MELT morsels in medium, uncovered, microwave-safe bowl on MEDIUM-HIGH (70%) power for 1 minute; STIR. Morsels may retain some of their original shape. If necessary, microwave at additional 10- to 15-second intervals, stirring just until morsels are melted. Cool slightly.
COMBINE flour, baking powder and salt in small bowl. Beat butter, sugar and vanilla extract in large mixer bowl until creamy. Beat in eggs, one at a time, beating well after each addition. Beat in lemon peel and melted morsels. Gradually beat in flour mixture alternately with buttermilk. Pour into prepared pans.
BAKE for 20 to 25 minutes or until wooden pick inserted in cakes comes out clean. Cool in pan on wire racks for 10 minutes. Combine powdered sugar and lemon juice in small bowl. Make holes in cakes with wooden pick; pour half of lemon glaze over cakes. Let stand for 5 minutes. Invert onto serving platter. Make holes in top of cakes; pour remaining glaze over cakes. Cool completely before serving.
* May use 6 ounces of NESTLÉ TOLL HOUSE Premier White Baking Bars, broken into pieces, instead of the morsels.