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Glazed Lime Cake

['3/4 cup (1 1/2 sticks) butter, room temperature', '2 1/2 cups powdered sugar, divided', '2 large eggs, room temperature', '1/4 cup milk', '1 1/3 cups self-rising flour', '2 to 3 large limes', '1/4 cup sugar']

Preheat oven to 350°F. Butter and flour 8-inch square baking pan. Using electric mixer, cream butter and 11/2 cups powdered sugar in large bowl. Beat in eggs 1 at a time. Beat in milk, then flour. Transfer batter to prepared pan; smooth top. Bake cake until tester inserted into center comes out clean, about 35 minutes.
Meanwhile, finely grate enough lime peel to measure 1 tablespoon. Halve limes; squeeze enough juice to measure 1/4 cup. Mix peel, juice, and 1/4 cup sugar in small bowl. Set lime syrup aside.
Using skewer, poke holes all over baked cake. Spoon half of lime syrup (about 3 tablespoons) over hot cake. Cool.
Whisk 1 cup powdered sugar into remaining lime syrup; drizzle over cake. Let stand 1 hour. Cut cake into squares.

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