Creamy Lemon Squares

1 cup butter or margerine (the stick variety works best)
2 cup flour
1/2 cup confectioner (or powdered) sugar
1 pkg. (8 oz.) PHILADELPHIA Neufchatel Cheese, 1/3 Less Fat than Cream Cheese, softened
1 cup granulated sugar
2 eggs
2 Tbsp. flour
3 Tbsp. grated lemon peel, divided
1/4 cup fresh lemon juice
1/4 tsp. CALUMET Baking Powder
2 tsp. powdered sugar

PREHEAT oven to 350ºF. Line 8-inch square baking pan with foil, with ends of foil extending over sides of pan; set aside. Mix butter, flour and powdered sugar in medium bowl until mixture resembles coarse crumbs; press firmly onto bottom of prepared pan. Bake 15 min.

MEANWHILE, beat Neufchatel cheese and granulated sugar with electric mixer on medium speed until well blended. Add eggs and 2 Tbsp. flour; mix well. Blend in 1 Tbsp. lemon peel, lemon juice and baking powder; pour over crust.

BAKE 25 to 28 min. or until center is set. Cool completely. Cover and refrigerate at least 2 hours or overnight. Sprinkle with powdered sugar and remaining 2 Tbsp. grated lemon peel just before cutting into squares to serve. Store leftover squares in refrigerator.