Preheat oven to 160°C fan forced. Grease a 8 cup bundt tin.
Using an electric mixer, beat eggs, caster sugar and vanilla in a large bowl on high speed for 3 minutes or until pale and thick. Stir in oil, lemon rind and milk.
Sift the flour over the egg mixture. Stir gently until combined. Pour into the cake pan. Bake for 35-38 minutes or until a skewer inserted into the centre comes out clean.
Stand in the cake pan for 10 minutes, then carefully turn onto a wire rack. Cool for 15 minutes.
Mix the icing sugar with enough lemon juice to form a thick drizzly icing. Spoon over the cake, sprinkle over the peanuts. Serve.
TIP: If you don’t have a bundt tin, grease and line base 23cm springform pan. Pour 3cm water into a well-greased, straight sided heatproof glass or cup. Stand in the centre of the pan. Check the cooking after 30 minutes.