Preheat oven to 350F.
Using an electric mixer, cream butter and sugar until light and fluffy. Beat in egg until fully incorporated.
In another bowl, combine flour and baking powder. While beating slowly, add about 1/3 of the dry mixture to the creamed mixture and half of the milk. Repeat this step, with another 1/3 of the dry mixture and the remaining milk; then add the remaining dry mixture and beat thoroughly until fully incorporated.
Pour batter into a floured and greased square 9-inch baking pan. Bake for about 30 minutes.
While the cake is in the oven, make the lemon curd sauce: Combine sugar, eggs, lemon rind and juice in the top of a double boiler. Bring to a boil. Reduce heat to medium and cook, stirring constantly, until mixture thickens and coats the back of a spoon. Add butter one tablespoon at a time. Whisk until blended.
Serve cake with dessert sauce.