Before you begin, make sure all the ingredients are at room temperature. Let's start by preheating your oven to 350 degrees F and greasing a bundt pan.
In a medium bowl sift together the all-purpose flour, baking powder, and salt. Set it aside. SAVE 1 TABLESPOON DRY MIX TO COAT THE BLUEBERRIES.
Dust the blueberries with saved flour. This will prevent them from sinking to the bottom of the cake. Set aside.
Next, in the bowl of your stand mixer cream butter and sugar for 3-4 minutes until light and fluffy. Mix in cream cheese,water, and blend until well incorporated.
Time to add your eggs one at a time. To avoid the eggy taste in cakes, add eggs one by one. Make sure the first one is blended well into the mix before the second one goes in. Lemon zest is next.
Mix wet ingredients into dry ingredients until just combined.
Now, fold in the berries (coated with flour in the previous step) into the cake batter. Be very careful with the blueberries. Fold gently. Because if you mix more they will start to bleed in the batter and you will end up with a purple blueberry cake.
Transfer the cake batter to the pan and bake it at preheated oven (350 degrees F) for 45 minutes. Before placing the bundt pan in the oven, tap the cake pan on the counter couple of times - this will pop all the bubbles and help in the rising of the cake.
Bake for 45 minutes or until a toothpick inserted in the center comes out clean. Every oven is different so start checking around 40 minutes.
Transfer the baked cake on to a baking rack and allow it to cool for 15 minutes.
Once cooled carefully remove from pan and cool completely. Cut a big slice and enjoy this super moist and deliciously yummy cake.
For the lemon glaze: Sift 2 cups of powdered sugar into a bowl. Pour in 3-4 tablespoons of lemon juice and stir until the glaze is thin. Add more lemon juice to reach the desired consistency. Pour the glaze all over the cake and serve.