German Blueberry Kuchen

3 cups all-purpose flour -- sifted
1 3/4 cups sugar
4 teaspoons baking powder
1/2 teaspoon salt
1/2 cup shortening
1 1/3 cups milk
2 large eggs
2 teaspoons vanilla
1 teaspoon nutmeg -- freshly grated
1 lemon peel -- grated
1 1/2 cups nuts -- chopped
3 cups blueberries
confectioner's sugar -- sifted

Preheat oven to 350 F. Butter and flour a 9x12" baking pan.

In a bowl, sift the flour, 1 1/2 cups of the sugar, baking powder and salt.

Blend in the shortening and stir in the milk. With an electric mixer, beat the batter for 3 minutes. Beat in the eggs, one at a time, vanilla, nutmeg, and lemon peel, then beat for 2 minutes more.

Stir in the nuts, then pour the batter into the prepared pan. Top with the blueberries and sprinkle with the remaining sugar. Bake the kuchen for 40 to 45 minutes or until golden brown. Cool to warm, cut into squares, and dust with confectioners' sugar.