To make the bread: Preheat the oven to 350°. Grease and flour bottom and halfway up the sides of an 8x4x2inch loaf pan; set aside.
In a large mixing bowl, cream the softened butter or margarine and the 1 cup granulated sugar together with an electric mixer until fluffy.
Add the eggs and the 1 teaspoon lemon peel. Beat the mixture well.
Stir together the flour and baking powder. Add the flour-baking powder mixture to the sugar mixture alternately with the milk, beating well after each addition.
Stir in the chopped pecans.
Spread the batter in the prepared loaf pan and bake in the 350° oven for 55 to 60 minutes or until a wooden toothpick inserted near the center of the bread comes out clean.
If necessary, cover the bread with aluminum foil for the last 15 minutes of baking to prevent overbrowning.
To make the lemon glaze: Stir together the 1/4 cup granulated sugar, the lemon juice and the 1 teaspoon lemon peel. Spoon the lemon glaze over the hot bread. Cool in the pan for 10 minutes.
Remove the bread from the pan and cool on a wire rack.
To make the orange cream cheese: In a small bowl, stir together the cream cheese, powdered sugar, orange juice and orange peel until the mixture is well blended. Serve the orange cream cheese with the lemon tea bread.