Heat oven to 325 degrees F. Coat three 12-cup muffin pans with nonstick cooking spray and set aside.
With mixer on medium speed, beat butter, cream cheese and sugar in bowl until fluffy. Add eggs, one at a time, beating well after each addition. Mix in lemon juice, extract and lemon peel.
On low speed, beat in flour, baking powder and salt. Fill each muffin cup with about 1/3 cup of batter for a total of 28. Bake at 325 degrees F for 23 to 25 minutes or until toothpick inserted in the center comes out clean. Cool in pans on wire rack for 10 minutes. Remove cakes from pans to wire rack and cool completely.
In medium-size bowl, blend confectioners sugar, milk and lemon extract until smooth. Dip top of each cake in glaze; place on parchment or waxed paper to dry.