Preheat your oven to 350°F (175°C).

Grease a 9-inch round cake pan with butter or non-stick spray.

Mix the dry ingredients in a bowl: flour, baking powder, and salt.

Cream the butter and sugar in a separate mixing bowl until light and fluffy, about 3-5 minutes.

Add eggs one at a time, mixing well after each addition.

Stir in the fresh lemon juice and Limoncello until combined.

Combine the dry ingredients into the wet mixture gradually, alternating with milk.

Pour the batter into the prepared cake pan and smooth out the top with a spatula.

Bake in your preheated oven for 25-30 minutes or until a toothpick comes out clean.

Cool the cake in the pan for 10 minutes before transferring it to a wire rack to cool completely.

In a small bowl, whisk together powdered sugar, limoncello, and fresh lemon juice until smooth.