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BEAT milk, dry pudding mix and lemon peel in medium bowl with wire whisk until well blended. Gently stir in half of the whipped topping. Refrigerate 5 min. or until thickened.
CUT cake horizontally into three layers. Place bottom cake layer on serving plate; top with 1-1/4 cups of the pudding mixture and middle cake layer. Cover with remaining pudding mixture and top cake layer.
FROST side and top of cake with remaining whipped topping; top with berries. Refrigerate at least 1 hour. Store leftovers in refrigerator.