In large mixing bowl beat butter with electric mixer on medium speed for 30 seconds. Add the 1 cup sugar; beat until combined. Add eggs; beat until well combined. Alternately add flour mixture and milk, beatng on low speed after each addition until combined.
Toss cranberries with 2 Tbsp. sugar; fold into batter with orange peel. Spoon batter into prepared pan; spread evenly.
Bake 50-60 mintues or until wooden pick inserted near center comes out clean. Cool in pan 10 minutes. Remove from pan. Cool on rack. Prepare Orange Glaze; spoon over cooled cake. Let stand until glaze is set.
Orange Glaze:
In small bowl combine 1 cup powdered sugar and 1/2 teaspoon finely shredded orange peel. Add 2 to 3 teaspoons orange juice to make drizzling consistency.