1. In small bowl, with mixer at low speed, beat butter or margarine, 1 1/4 cups flour, 1/4 cup sugar, 1 egg yolk, and one-half of grated lemon peel until well mixed. Shape dough into ball and wrap with plastic wrap; refrigerate 1 hour.
2. Preheat oven to 400°F. Press one-third of dough onto bottom of 10" by 2 1/2" springform pan. Bake 8 minutes; cool.
3. Turn oven control to 475°F. In large bowl, with mixer at medium speed, beat cream cheese just until smooth; slowly beat in 1 3/4 cups sugar. With mixer at low speed, beat in eggs, milk, 3 tablespoons flour, remaining 2 egg yolks, and remaining lemon peel. At medium speed, beat 5 minutes.
4. Press remaining two-thirds of dough around side of pan to within 1 inch of top; do not bake. Pour cream-cheese mixture into pan; bake 12 minutes. Turn oven control to 300°F.; bake 35 minutes longer. Turn off oven; let cheesecake remain in oven 30 minutes. Remove; cool in pan on wire rack. Refrigerate cheesecake at least 4 hours or until well chilled.