In early 1942, Lee had her first # 1 hit, "Somebody Else Is Taking My Place," followed by 1943's "
Why Don't You Do Right?" (originally sung by
Lil Green), which sold over a million copies and made her famous. She sang with Goodman in two 1943 films,
Stage Door Canteen and
The Powers Girl.
In March 1943, Lee married Dave Barbour, the guitarist in Goodman's band. Peggy said, "David joined Benny's band and there was a ruling that no one should fraternize with the girl singer. But I fell in love with David the first time I heard him play, and so I married him. Benny then fired David, so I quit, too. Benny and I made up, although David didn't play with him anymore. Benny stuck to his rule. I think that's not too bad a rule, but you can't help falling in love with somebody."
When Lee and Barbour left the band, the idea was that he would work in the studios and she would keep house and raise their daughter, Nicki. But she drifted back towards songwriting and occasional recording sessions for the fledgling
Capitol Records in 1944, for whom she produced a long string of hits, many of them with lyrics and music by Lee and Barbour, including "I Don't Know Enough About You" and "It's a Good Day" (1946). With the release of the smash-hit #1-selling record of 1948, "Mañana," her "retirement" was over.
In 1948, she joined
Perry Como and
Jo Stafford as one of the rotating hosts of the
NBC musical radio program
Chesterfield Supper Club. She was also a regular on NBC's
Jimmy Durante Show during the 1947-48 season.
She left Capitol for a few years in the early 1950s, but returned in 1957. She is most famous for her
cover version of the
Little Willie John hit "
Fever", to which she added her own, uncopyrighted lyrics ("Romeo loved Juliet," "Captain Smith and Pocahontas") and her rendition of
Leiber and Stoller's "
Is That All There Is?" Her relationship with the Capitol label spanned almost three decades, aside from her brief but artistically rich detour (1952-1956) at
Decca Records, where she recorded one of her most acclaimed albums
Black Coffee (1956). While recording for Decca, Lee had hit singles with the songs "Lover" and "Mr. Wonderful."