Preheat the oven to 425F. Add sugar and lemon zest to a large bowl. Use your fingers to rub the lemon zest into the sugar. This helps release the lemon flavor in the zest!
Add melted butter and whisk for 2 minutes until well combined. Add eggs, sour cream, milk, and vanilla. Whisk until combined. Add lemon juice and stir to combine.
In a separate bowl, add flour, baking powder, baking soda, and salt. Transfer to a sifter and sift into the larger bowl (if you don't have a sifter, just add the ingredients directly in). Add the poppyseeds and stir until the dry ingredients are just combined. Don't overmix here! Set this bowl aside.
In a small bowl, add all the ingredients for the streusel -- butter, sugar, flour, salt. Mix until combined. The mixture should stick together if you squeeze it in your fist, but should crumble when you run it through your fingers. If it is still sticky, add 1 teaspoon additions of flour until it is no longer sticky.
Line every other hole in a muffin tin with cupcake liners. Spray each liner with cooking spray (this ensures they won't stick!). Scoop the batter into each liner, filling each about 3/4 full. Top each with a handful of streusel.
Transfer to the oven. Bake at 425F for 5 minutes, then turn the temperature down to 350F and bake for an additional 12-14 minutes*. Bake until an inserted toothpick comes out clean.
Transfer to a cooling rack. While they cool, make the icing. Add the powdered sugar and 1 tbsp of lemon juice to a bowl. Whisk until smooth. If the icing is too thick, add more lemon juice until your desired consistency is achieved. Enjoy!