Combine blueberries, water, 1/2 cup sugar, lemon juice and cinnamon in large saucepan. Bring to a boil. Cover. Reduce heat to low. Simmer 5 minutes.
Combine flour, 1/4 cup sugar, baking powder, salt and lemon peel in medium bowl. Cut in shortening using pastry blender or 2 knives until mixture resembles coarse crumbs. Stir in milk just until flour is moistened. Drop 6 heaping tablespoonfuls of dough into simmering blueberry mixture. Cover pan tightly. Simmer 15 minutes without lifting cover.
Spoon dumplings into 6 individual serving dishes. Spoon hot fruit over dumpling. Serve with cream, whipped cream or ice cream, if desired.