Preheat the oven to 350 degrees. Grease and flour a bread loaf pan. In a bowl, sift together the flour, baking powder, and salt.
In a separate large bowl, whisk together the yogurt, sugar, eggs, canola oil, lemon zest, and vanilla extract.
Add the dry ingredients into the wet ingredients and whisk until batter is smooth.
Sprinkle 2 tsp flour over blueberries and toss to coat. This will prevent them from sinking to the bottom of the cake. Carefully fold blueberries into the cake batter.
Pour the batter into the prepared pan and bake for about 45-50 minutes, or until toothpick tester comes out clean.
In a small sauce pan over medium heat, stir together the lemon juice and sugar. Cook until the sugar dissolves completely. Turn off heat and set aside. When the cake is done, remove it to a wire rack and run a knife along the edges of the pan to loosen. Allow it to cool in the pan for 10 minutes.
Carefully transfer cake to wire baking rack on top of a sheet pan. Pour the lemon simple sugar mixture over the cake and allow it to soak in. Let cake cool.
In a small bowl, stir together the powdered sugar, vanilla extract, and enough milk to make a thin pourable consistency.
Pour over the cooled cake and let it run down the sides. Slice and enjoy!