Blueberry-Cheese Coffee Cake



1 1/2  cups          sugar, divided
2/3  cup           butter or margarine — divided
2                    eggs
2 1/2  cups          all-purpose flour — divided
1      tablespoon    baking powder
1      teaspoon      salt
1      cup           low-fat milk
1      8 ounce pack  cream cheese — softened
2      teaspoons     lemon peel — divided
2      cups          blueberries, frozen or fresh

In a large bowl, cream together 1 1/4 cups sugar and 1/2 cup of the
butter.  Add eggs.  In a separate bowl, combine 2 1/4 cups flour, the
baking powder and salt.  Add to creamed mixture, alternating with milk;
mix well after each addition.  Beat in the cream cheese, mixing well.
Stir in 1 teaspoon lemon peel.   Toss blueberries with 2 tablespoons flour
and gently fold into the batter.  Pour into a greased 9-by-13-by-2-inch
pan.  Combine the remaining sugar, butter, flour and lemon peel and
sprinkle over the batter.

Bake at 350 degrees for 45 to 50 minutes.

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