Preheat oven to 375 degrees F. Lightly grease and flour the bottom and sides of a 9" round or square baking pan. Set aside.
In a small bowl beat the cream cheese and 1/4 cup of sugar on medium until smooth and combined. Add in the lemon peel and 1 egg and beat until combined. Set aside.
In a medium bowl combine the flour, baking powder, baking soda and salt. Set aside.
In a large mixing bowl beat the remaining 3/4 cup of sugar and the butter with a mixer on medium speed until combined. Add in the other 2 eggs and the vanilla. Beat on low for 1 minute then high for 1 minute. Now, alternating add in the flour and buttermilk beating just until combined after each addition.
Spoon half of the batter into the prepared baking pan and spread out into an even layer. Pour the cream cheese filling over the batter, spreading to the edges. Carefully spoon the remaining batter over the top, spreading to the edges. Bake for 40 minutes or until a toothpick inserted near the center comes out clean. Cool in pan for 10 minutes then remove. May serve warm topped with powdered sugar and additional raspberries.