Preheat oven to 375°. Beat egg yolks at high speed with an electric mixer 4 minutes or until thick and pale.
Beat butter at medium speed until creamy; gradually add sugar, beating well. Add beaten egg yolks, beating well.
Combine flour, baking powder, and salt; add to butter mixture alternately with 3/4 cup milk, beginning and ending with flour mixture. Beat at low speed just until blended after each addition. Stir in 1 tsp. lemon zest, 1 tsp. fresh lemon juice, and 1 tsp. vanilla. Spoon batter into 3 greased and floured 8-inch round cake pans.
Bake at 375° for 12 to 17 minutes or until a wooden pick inserted in center comes out clean. Cool in pans on wire racks 10 minutes. Remove from pans to wire racks, and let cool 1 hour or until completely cool.
Spread Luscious Lemon Frosting between layers of cake. Cover and chill until ready to serve.