James Anderson became the fourth England bowler to reach the milestone of 300 test wickets but New Zealand continued to frustrated the hosts after day two at Lord's.

After England were all-out for 232, with Tim Southee taking 4-58 as Jonny Bairstow top scored with 41, Anderson dismissed both New Zealand openers Hamish Rutherford (4) and Peter Fulton (2) to leave the tourists 7 for 2.

But a 93-run partnership between Kane Williamson (44 not out) and Ross Taylor (66) rebuilt the visitors' innings before the latter was trapped lbw by Anderson and Dean Brownlie was given out leg-before off Steven Finn after a review.

New Zealand will begin day three trailing England's first innings total by 79 with six wickets intact looking to build a substantial lead with captain Brendan McCullum not out overnight on 1 alongside Williamson.

James Anderson
Anderson became the fourth England bowler to reach 300 test wickets.

England meanwhile will bemoan how they struggled to up the pace in their innings while batting and then saw New Zealand, the regarded underdogs despite running their opponents close in the reverse series in March, look comfortable on a pitch which continues to offer little pace.

The hosts' arrears could have been reduced has Matt Prior not dropped Williamson on 23, and having added just four more the 22 year old Northern Districts batsman survived a caught-behind appeal, not reviewed by England, which was later shown to have flicked the bat.

However, even New Zealand's consummate performance amid a some shoddy umpiring couldn't take the gloss off Anderson's crowning day at the home of cricket, where he joined Ian Botham, Bob Willis and Fred Truemen on surpassing the 300-wicket milestone for England.

England had made a sluggish start to day two after a slow start to the test-match summer on Thursday, and wickets in successive balls for Southee, as Joe Root (40) succumbed to a ball down the leg side before Prior was caught lbw first ball.

Stuart Broad (0) survived the hat-trick ball, but it worked as only temporary respite for England as just two balls passed before the England all-rounder was given out, as Neil Wagner got through his defences and then Graeme Swann went for just 5 off the same bowler.

Finn (4) provided little resistance before Southee caught and bowled Bairstow to leave England on a sub-par 232 all out.

Anderson's crowning moment came inside the first seven overs of the New Zealand innings after captain Alastair Cook had excellently caught Rutherford, Swann was on hand to bring up Anderson's 300 and Fulton was sent packing.

Taylor and Williamson provided stubborn resistance, the former striking the first half century of the match from spritely 49 balls prior to Anderson picking up his third wicket.

Williamson's innings should have been prematurely ended twice in the space of four overs, as Prior put down a edge off Anderson, before a half-hearted appeal accompanied Finn's first over of his second spell, in which he found a nick.

Brownlie did eventually fall to Finn but it remained emphatically New Zealand's day as they continue to frustrate England in similar fashion as they did on home soil two months ago.