Grease and flour a 9x5-inch loaf pan and preheat the oven to 350 F.
Place the blueberries in a bowl and toss them with 2 tbsp of flour until fully covered.
Whisk together the flour, baking powder, and salt in a medium-sized bowl until combined. Set aside.
Using a hand-held or stand mixer, cream the butter, cream cheese, lemon zest, and sugar until smooth.
Add the milk, vanilla extract, and eggs, one at a time, until creamy.
Gradually and at low speed, add the dry ingredients to the cream cheese mixture until combined. Do not overmix.
Using a spatula, fold in the blueberries. Shake off the excess flour before adding them to the batter.
Spoon the batter into the prepared loaf pan and bake for 50-60 mins, or until a toothpick inserted in the middle comes out clean.
Remove the cooked loaf from the oven and let it cool down in the pan for 10 mins, then transfer to a cooling rack to cool down completely.
Make the icing: mix the powdered sugar with the milk until smooth. Drizzle over the cold loaf.