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Preheat the oven to 375 degrees F (190 degrees C). Grease a 10x15-inch baking pan.
Bring 1 cup butter and water to a boil in a large saucepan. Remove from heat, and stir in flour, sugar, eggs, sour cream, lemon extract, baking soda, and salt until smooth. Pour batter into the prepared pan and spread into an even layer.
Bake in the preheated oven until cake is golden and a toothpick inserted near the center comes out clean, 20 to 22 minutes. Cool for 15 minutes.
Meanwhile, for glaze, place confectioner’s sugar in a bowl.
Add milk, butter, and salt to a small saucepan over medium heat, and bring just to a boil, stirring occasionally; pour over confectioner’s sugar and whisk to combine. If glaze is too thin, whisk in more confectioner’s sugar. Whisk in lemon extract and lemon zest.
Pour glaze over cake while still warm. Spread evenly over cake with a spatula. Cool completely before serving, about 50 minutes.