Combine 2 tablespoons peppercorns, 8 lemon rind strips, 4 bay leaves, salt, and 1 1/2 cups oil in container of an electric blender; cover and process until rind is minced, stopping once to scrape down sides. Pour mixture into a jar; add remaining 1/2 cup oil. Cover and refrigerate 24 hours.
Curl 4 lemon rind strips tightly around a pencil; wrap with plastic wrap and refrigerate.
Let oil stand at room temperature 2 hours. Pour mixture through a wire-mesh strainer lined with 2 layers of cheesecloth into a decorative bottle or jar, discarding solids. Remove lemon rind curls from pencil; add to bottle. Add 2 or 3 bay leaves and peppercorns to bottle. Seal bottle with a cork or an airtight lid. Store in refrigerator up to 1 month.
Use in marinades for poultry and beef and in vinaigrettes or salad dressings; or brush on fish before cooking.
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