Grandma Bastow's Lemon Velvet Cake
First, put the powdered sugar into a small mixing bowl. You need to remove the zest from the outside of the lemon with a zesting tool (a small grater will work if you don't have the zesting tool) and add it to the powdered sugar. Cut the lemon in half and add all the juice from the lemon (being careful to remove all the seeds) to the sugar as well. Add the melted butter and water, then mix with a wire whisk until blended well. This mixture will be very runny.
When cake has cooled for five minutes, and holes have been poked into top of cake, slowly pour the icing mixture over the top of the cake and allow it to seep down into the cake, being careful not to allow the icing to run over the sides of the cake. You want to keep the icing on the top of the cake so all the flavor doesn't run to the sides.
If you are a true lemon flavor lover, you can double the icing recipe and it doubles the lemon flavor of this cake. I have tried it and WOW does it ever pack a punch of lemon flavor!! Yummy