In a large bowl, combine 1 cup sugar and 3 tablespoons of fresh lemon zest. Use your fingers to massage the zest into the sugar until it becomes fragrant and pale yellow. This releases the natural essential oils and boosts the lemon flavor.
Juice your zested lemons and set aside ¼ cup for the batter and 1 tablespoon for the glaze.
To the lemon sugar, add: 1 room temperature egg , ½ cup yogurt (room temperature), ¼ cup lemon juice, ½ cup potato flake sourdough discard, ¼ cup melted coconut oil, ¼ cup melted butter, cooled.
Whisk everything together until smooth and fully combined.
Add 2½ cups all-purpose flour to the wet mixture. Use a rubber spatula to gently mix until a thick batter forms and no flour streaks remain. Be careful not to over-mix.
Cover the bowl with plastic wrap and let it sit in a warm place for 8–16 hours. This allows the batter to ferment, deepening the flavor and breaking down the starches for better digestibility. Need to leave it longer? Place it in the fridge for additional fermentation time. Putting it in the refrigerator slows down the fermentation and allows you to wait until the most convenient time to bake the lemon bread.
After fermentation, preheat your oven to 375°F and prepare your loaf pan with parchment or cooking spray. Add the baking soda, baking powder, salt, and vanilla to the batter using a small fine mesh strainer to sift the dry ingredients to avoid lumps in the batter.:
Stir until fully incorporated, but avoid over-mixing. Pour the batter into your prepared pan.
Place the pan in the oven and immediately reduce the temperature to 350°F. Bake for 40–50 minutes, or until a toothpick inserted into the center comes out clean. Check the bread at 20 minutes and cover loosely with aluminum foil if the top is browning too quickly.
While the bread bakes, whisk together the powdered sugar and lemon juice in a small bowl. It will be thick and seem that it won't come together at first, but don't be tempted to add more juice yet. Continue mixing. It will form a thick icing glaze that will top the loaf perfectly. Add additional lemon juice if it is to thick to spread.
After the bread cools for 10 minutes in the pan, transfer it to a wire rack and cover with the glaze. Garnish with ½ teaspoon of lemon zest if desired.