The extragalactic distance scale builds directly on the Cepheid Period-Luminosity (PL) relation as delineated by the sample of Cepheids in the Large Magellanic Cloud (LMC). However, the LMC is a dwarf irregular galaxy, quite different from the massive spiral galaxies used for calibrating the extragalactic distance scale. Recent investigations suggest that not only the zero-point but also the slope of the Milky Way PL relation differ significantly from that of the LMC, casting doubts on the universality of the Cepheid PL relation. We want to make a differential comparison of the PL relations in the two galaxies by delineating the PL relations using the same method, the infrared surface brightness method (IRSB), and the same precepts. The IRSB method is a Baade-Wesselink type method to determine individual distances to Cepheids. We apply a newly revised calibration of the method as described in an accompanying paper (Paper I) to 36 LMC and five SMC Cepheids and delineate new PL relations in the V,I,J, & K bands as well as in the Wesenheit indices in the optical and near-IR. We present 509 new and accurate radial velocity measurements for a sample of 22 LMC Cepheids, enlarging our earlier sample of 14 stars to include 36 LMC Cepheids. The new calibration of the IRSB method is directly tied to the recent HST parallax measurements to ten Milky Way Cepheids, and we find a LMC barycenter distance modulus of 18.45+-0.04 (random error only) from the 36 individual LMC Cepheid distances. We find a significant metallicity effect on the Wvi index gamma(Wvi)=-0.23+-0.10 mag/dex as well as an effect on the slope. The K-band PL relation on the other hand is found to be an excellent extragalactic standard candle being metallicity insensitive in both slope and zero-point and at the same time being reddening insensitive and showing the least internal dispersion.
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