Preheat your oven to 325°F (165°C). Thoroughly grease and flour a 10-inch bundt pan, ensuring you reach all the crevices.
In a large mixing bowl, beat the softened butter until creamy (about 1 minute). Gradually add the sugar and continue beating on medium-high speed for 5-7 minutes until the mixture becomes notably lighter in both color and texture.
Add eggs one at a time, beating well after each addition. Scrape down the bowl frequently to ensure even mixing. After all eggs are incorporated, blend in the vanilla extract, key lime zest, and 2 tablespoons of the key lime juice.
In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.
With the mixer on low speed, add the flour mixture and buttermilk alternately to the butter mixture, beginning and ending with the flour (three additions of flour, two of buttermilk). Mix just until combined after each addition.
Gently fold in the remaining key lime juice. The batter should be thick but pourable.
Pour the batter into your prepared bundt pan, smoothing the top with a spatula. Tap the pan gently on the counter to release any trapped air bubbles.
Bake in the preheated oven for 60-70 minutes, or until a wooden skewer inserted in the center comes out clean or with a few moist crumbs.
Allow the cake to cool in the pan for exactly 15 minutes. Invert onto a wire cooling rack and let cool completely.
Meanwhile, whisk together the powdered sugar, key lime juice, and zest until smooth to create the glaze.
When the cake is completely cool, drizzle the glaze over the top, allowing it to cascade down the sides naturally.