Preheat oven to 350 degrees. Grease and flour two 9 inch round cake pans.
In the bowl of stand mixer with a paddle attachment, beat together butter and sugar until fluffy. Beat in eggs one at a time, scrapping down the sides of the bowl after each egg. Beat in the lemon extract.
In another bowl combine cake flour, baking powder and salt.
Add 1/3 of the dry mixture to the wet mixture. Once mixed, add in 1/3 of the buttermilk. Continue to alternate adding 1/3 of each at a time just until mixed. Turn off mixer.
Combine blueberries with two tablespoons all purpose flour. Gently fold blueberries into the cake batter. Pour cake batter evenly into prepared pans. Bake 35 - 40 minutes or until a toothpick inserted in the center comes out clean.
Remove cake from the oven and allow to cool several minutes in the pan. Carefully slide a butter knife around the edges to loosen the cake and turn over onto a cooling rack. Cool completely.
While cake is cooling prepare the frosting by creaming together cream cheese and butter. Once smooth beat in vanilla. Finally beat in the powdered sugar one cup at a time. Frosting should be stiff but spreadable.
Place one layer of the cake on your serving plate. Spread 1/3 of the frosting over the top. Place the other layer on top of the frosting. Use the remaining frosting to frost the cake. Slice and serve.
Cover and refrigerate any leftovers. Remove from the refrigerator about 1 hour before serving.