Preheat oven to 350°.
Beat softened butter at medium speed with an electric mixer until creamy. Gradually add 1 cup granulated sugar, beating until light and fluffy. Add the eggs, 1 at a time, beating just until blended.
Whisk together flour, baking powder, and salt; add to butter mixture alternately with milk, beating on low just until blended, beginning and ending with flour mixture. Stir in 1 tablespoon orange rind. Spoon batter into greased and floured 8 x 4 inch loaf pan.
Bake for 50 minutes - 1 hour or until a wooden pick inserted in center of bread comes out clean. Let cool in pan 10 minutes. Remove the bread from pan, and cool completely on a wire rack.
Stir together powdered sugar and orange juice until smooth; spoon evenly over top of bread, letting excess drip down sides. Stir together remaining 1 tablespoon orange rind and 1 tablespoon granulated sugar; sprinkle on top of bread.