Mix butter and cream cheese at medium speed with an electric beater until creamy; gradually add sugar, beating well.
Add eggs, 1 at a time, beating just until combined. Add flour, beating just until moistened. Stir in lemon rind and vanilla. Pour batter into a greased and floured 10-inch tube pan.
Bake at 350° for 45 minutes or until a wooden pick inserted in center comes out clean. Cool in pan on a wire rack 10 minutes; remove from pan, and cool completely on a wire rack. Lightly dust the top of cake with powdered sugar, and serve with strawberries.