Preheat Oven: Heat your oven to 350°F (175°C). Grease and flour three 8-inch cake pans.
Prepare Cake Batter: In a large bowl, cream together butter and sugar until light and fluffy. Beat in eggs one at a time, then stir in lemon zest and vanilla. In another bowl, whisk together flour, baking powder, and salt. Gradually add to the creamed mixture alternately with milk, starting and ending with flour mixture. Gently fold in blueberries.
Bake: Divide the batter evenly among the prepared pans. Bake for 25-30 minutes or until a toothpick inserted in the center comes out clean.
Make Frosting: Beat cream cheese and butter together until smooth. Gradually add powdered sugar, beating until smooth. Stir in vanilla and lemon juice.
Assemble Cake: Once cakes are cool, remove from pans. Place one layer on a cake stand, spread with frosting, then top with another cake layer. Repeat with remaining layers and cover the outside of the cake with frosting.
Decorate: Garnish with fresh blueberries and lemon zest.
Serve: Enjoy this refreshing and vibrant cake at any special occasion!