1 1/2 cups granulated sugar, divided
1/2 cup plus 2 tablespoons butter, divided
2 1/2 cups all-purpose flour
1 tablespoon baking powder
1 teaspoon salt
3/4 cup milk
1/4 cup water
2 cups fresh blueberries
8 ounces cream cheese, cubed
2 teaspoons lemon rind, grated, divided
Cream together 1 1/4 cups sugar and 1/2 cup butter until light and fluffy; add eggs, one at a time, mixing well after each addition.
Combine 2 cups flour, baking powder and salt. Add to creamed mixture alternately with milk and water.
Toss blueberries in 1/4 cup flour; fold into batter with cream cheese and 1 teaspoon lemon rind. Pour into greased and floured 13 x 9-inch baking pan.
Combine remaining sugar, flour and rind; cut in remaining butter until mixture resembles coarse crumbs. Sprinkle over batter.
Bake in preheated 375 degree F oven for 1 hour.
NOTE: two cups frozen, thawed, drained blueberries can be substituted for fresh blueberries.