Heat oven to 350 degrees F. Line 18 standard-size muffin cups with paper liners.

Cupcakes: Mix chopped strawberries, 1/4 cup granulated sugar and lemon rind in medium-size saucepan. Cook over medium heat, stirring occasionally, 8 to 10 minutes or until sugar is dissolved and mixture is thickened. Spoon into small bowl; let cool completely, about 1 hour.

Mix flour, baking powder, baking soda and salt in large bowl.

Beat together butter and remaining 1 cup granulated sugar in medium-size bowl until fluffy, about 2 minutes. Add the eggs, one at a time, beating after each. Beat in vanilla.

On low speed, beat flour mixture into butter mixture in 3 additions, alternating with buttermilk, and ending with flour. Swirl in cooled strawberry mixture to create a marble pattern. Divide batter equally among prepared muffin cups.

Bake in 350 degrees F. oven for 18 to 20 minutes or until cupcakes spring back when gently touched. Let cool in cups on wire rack for 5 to 10 minutes. Unmold cupcakes onto rack to cool completely.

Frosting: Beat together butter, confectioners' sugar, milk and vanilla in medium-size bowl until smooth, about 3 minutes. Cover bowl with plastic wrap.

Garnish: Place cut strawberries on large plate. Liberally brush melted jelly over each piece. Set aside.

Frost tops of cupcakes. Top each with glazed strawberry piece(s).