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1. Several hours or day before serving, prepare Lemon Filling: In 2-quart saucepan, combine sugar, cornstarch, and salt until well mixed. Gradually add water, stirring until smooth. Heat mixture to boiling over medium heat, stirring constantly with wire whisk; boil 1 minute (or until mixture thickens). In small bowl, quickly stir some of hot mixture into egg yolks, then stir egg-yolk mixture into remaining hot mixture in saucepan until well blended.
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Heat oven to 375'F. Grease three 9-inch-round baking pans. Line bottoms of pans with parchment or, waxed paper; grease and flour paper. In medium-size bowl, combine flour, baking powder, and salt.
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3. In large bowl, with electric mixer at medium speed, beat 1 3/4 C sugar and very light and fluffy; beat in lemon juice, lemon rind, and vanilla.
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Add flour mixture alternately with milk to butter mixture, beginning and ending with flour mixture, beating until smooth batter forms.
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4. In another bowl, with clean beaters and mixer at high speed, beat egg whites and remaining 1/4 C sugar until stiff peaks form. With rubber spatula, gently fold egg whites into batter. Divide evenly among prepared pans.
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5. Bake 25 minutes, or until cake tester inserted in center comes out clean. Cool cake layers in pans on wire racks 10 minutes; invert layers onto wire racks, remove parchment paper and cool layers completely.
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6. Meanwhile, prepare White-Chocolate Snowflakes: In double boiler, over hot, not boiling, water, or in microwave, melt 1 1/2 bars white chocolate.
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Cover a baking sheet with aluminum foil. Spoon melted white chocolate into pastry bag fitted with writing tip. Reserve pan in which white chocolate was melted. Onto foil-lined sheet, pipe twenty-eight 2-inch snowflakes.
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Decorate with silver dragees, if desired. Place sheet of snowflakes in freezer until cake is completely frosted.
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7. Prepare White-Chocolate Frosting: Melt remaining 2 1/2 bars white chocolate in the same pan; set aside to cool to room temperature. In large bowl, with electric mixer at medium speed, beat cream cheese until smooth.
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Gradually beat in white chocolate, butter, and lemon juice until frosting is smooth.
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8. To assemble cake, with sharp knife, trim tops of cake layers to make level. Place one cake layer on serving plate; spread with half of lemon filling; repeat with second cake layer and filling. Place last cake layer, upside down, on top of filling to complete 3-layer cake. Frost cake smoothly with White-Chocolate Frosting. Remove snowflakes from freezer; gently peel snowflakes from foil. Press a few snowflakes into side of cake; pile remaining on top of cake. Serve immediately or store in refrigerator.
