In a large bowl, cream butter and sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Combine milk and extracts. Combine the flour, baking powder and salt; gradually add to creamed mixture alternately with milk mixture, beating well after each addition.
Transfer to three greased and floured 9-in. round baking pans. Bake at 375° for 18-22 minutes or until a toothpick inserted in the center comes out clean. Cool for 10 minutes before removing from pans to wire racks to cool completely.
Cut each cake into two horizontal layers. Place a bottom layer on a serving plate; spread with a fifth of the jam. Repeat layers four times. Top with remaining cake.
For frosting, in a small bowl, beat butter until fluffy. Gradually beat in the confectioners' sugar, lemon juice and zest until blended. Frost top and sides of cake.