Combine all ingredients except blueberries and jam and beat for 2-3 minutes until well blended. Stir in blueberries and pour batter into a well greased bundt pan. Add jam in spoonfuls, spacing it evenly around batter in the middle. Use a skewer or sharp knife and swirl jam around in batter. Bake at 350 degrees for 32-40 minutes, checking with a cake tester near the end of baking time. Remove cake from oven when just done, do not over bake.
Cool cake in pan on wire rack for at least 30 minutes before removing from pan, and cool thoroughly before glazing.
To make glaze, melt butter in a large measuring cup. Stir in lemon juice and lemon extract. Add powdered sugar in batches until glaze reaches desired consistency. Pour or spoon glaze over cooled cake. Cake can be stored covered, at room temperature.