Cream butter; gradually add 1 cup sugar, beating at medium speed with mixer until well blended. Add eggs, one at a time beating well with each addition. Combine 1 1/2 cups flour, baking powder and salt; add to creamed mixture alternately with milk. Stir in grated lemon rind.
Dredge blueberries in 2 teaspoons of flour; fold into batter. Pour batter into a greased loaf pan.
Bake at 350 for 55 minutes or until a wooden pick comes out clean.
Combine 1/3 cup sugar and lemon juice in a small saucepan; heat until sugar dissolves. Puncture top of bread in several places with a fork; pour lemon juice mixture over warm bread, allowing mixture to soak into bread. Cool bread in pan for 30 minutes.