Preheat oven to 350°F (175°C). Line a 9"x 13"x 2" baking pan with parchment paper. Grease (or butter and flour) the paper.
Combine the milk and lemon juice. Set aside.
Whisk the flour, baking powder, baking soda, and salt. Set aside.
Using an electric mixer on medium speed, beat the butter, sugar, and lemon zest until light and fluffy. Add the eggs, one at a time, mixing well after each addition.
Reduce mixer speed to low. Add the flour mixture in 3 portions, alternating with 2 portions of the milk mixture. Mix just until combined.
Transfer the batter to the prepared pan and spread evenly. Tap the pan on the counter a few times to get rid of large air pockets.
Bake 35 to 40 minutes, or the cake is golden brown and a pick inserted into the center comes out clean.
Cool the cake completely in the pan on a wire rack.
To make the frosting:
Using an electric mixer on low speed, mix the cream cheese and confectioners' sugar until thoroughly combined and smooth.
Mix in the sour cream and lemon zest.
Spread the frosting over the cooled cake. Decorate with sprinkles if you like.
Notes
Keep the cake chilled if not serving immediately. Bring to room temperature before serving. If you're adding sprinkles, you may want to wait to add them until just before serving to prevent any potential color bleeding into the frosting.
Cake recipe slightly adapted from The New York Times. Frosting recipe slightly adapted from Imperial Sugar.