Generously grease and flour eight 4-inch fluted tube pans or twenty 2 1/2-inch muffin pans.
Let butter and eggs stand at room temperature for 30 minutes.
Stir together flour, baking powder and nutmeg.
In a large mixing bowl beat butter with electric mixer on medium speed for 30 seconds. Add 1 cup of the sugar, 2 Tbsp at a time, beating on medium-high speed about 6 minutes or until mixture is very light and fluffy. Add eggs, one at a time, beating 1 minute after each addition, scraping bowl often. Stir in 1/3 cup of the Amaretto, the lemon peel, and vanilla. Gradually add flour mixture, beating on medium-low speed just till combined. Pour batter into prepared pans.
Bake at 325° F for 20 to 25 minutes for 4-inch pans, 22 minutes for muffin pans, or until a wooden pick inserted near center comes out clean. Cool on rack 10 minutes. Remove cakes from pans. Cool thoroughly.
Prick fluted top and sides of each cake or top and sides of each cupcake generously with tines of a fork.
For syrup, in saucepan combine remaining sugar, brown sugar, corn syrup, and1/2 cup water. Cook and stir over medium heat until bubbly and sugar is dissolved; remove from heat. Stir in remaining Amaretto. Cool 5 minutes.
Dip top and sides of each cake or top and sides of each cupcake into syrup. Place on wire rack above a baking shee Tbsp Spoon or brush remaining syrup over tops of cakes. Cool. Wrap cakes individually in plastic wrap; chill up to 3 weeks. (Or, transfer to a tightly covered container and chill up to 3 weeks.)
For giving, place the individually wrapped cakes in a tissue-paper-lined box. or place on foil-covered cardboard and over-wrap with cellophane.Servings: 8 miniature cakes or 20 cupcakes