Start by preheating oven to 350 degrees and spraying a bundt pan with non-stick spray.
Cream together butter and sugar then mix in your vegetable oil then eggs one at a time. Mix in vanilla extract and lemon extract.
In a separate bowl, whisk together flour, baking soda, nutmeg, baking powder and salt. Slowly incorporate the mixture in with your wet ingredients. Once combined, add in the sour cream.
Transfer your lemon cake mixture to the prepared bundt pan and bake for 50 minutes. Remove from oven and let pan sit for 15 minutes on a wire rack to cool.
Place a large plate on top of your bundt pan and invert cake out of pan. Using a second plate to sandwich your cake, gently flip cake back over again so rough side is facing up. Let cool on wire rack completely for about 1 hour.
Once your cake has cooled, make your lemon glaze. Sift powdered sugar into a mixing bowl, add water and lemon extract. Whisk to combine and then pour over your lemon bundt cake. Slice and serve.