Preheat the oven to 350°F (180°C). Grease a standard loaf pan and set aside. In a small bowl, toss the diced strawberries with a teaspoon of flour to prevent sinking.
In a mixing bowl, combine the all-purpose flour, baking powder, and salt. Whisk together until evenly mixed. Set aside.
1 1/2 cups all-purpose flour
In a stand mixer or large bowl, beat the softened butter and sugar on medium speed until the mixture is pale, fluffy, and incorporated—about 3-4 minutes. Add eggs one at a time, beating well after each addition. Mix in lemon zest, vanilla extract, and milk until smooth.
1 1/2 cups all-purpose flour
Gradually add the dry ingredients to the wet mixture, mixing just until combined. Gently fold in the floured strawberries with a spatula, trying not to crush them.
1 1/2 cups all-purpose flour
Pour the batter into the prepared loaf pan, spreading it evenly with a spatula. Place in the oven and bake until the top is golden brown and a toothpick inserted into the center comes out clean—approximately 60 minutes. Rotate halfway through baking for even browning.
Remove the cake from the oven and let it cool in the pan for 10 minutes. Then, transfer to a wire rack and cool completely before slicing. Serve with fresh strawberries or a dusting of powdered sugar if desired.