Lee had to settle for a spectacular second-round 11-under-par 61 after lighting up the Old Course at Siam Country Club in Pattaya on Friday.
Swedish legend Annika Sorenstam is the only woman to have shot a sub-60 score on the LPGA Tour, achieving the mighty feat with a 13-under 59 in the second round en route to victory at the 2001 Standard Register PING in Phoenix, Arizona.
After turning in seven-under 29, Lee continued her blitz with her eighth and ninth birdies of the day on holes 10 and 11 to be firmly on track to join Sorenstam in women's golf's most exclusive club.
But her push for 59 first began to stall with three straight pars before she drove the par-4 15th and drained the eagle putt to soar to 11 under for the round.
That left Lee needing two birdies in the last three holes - or finally an eagle at the par-5 18th.
Alas, she could only manage three more pars in an otherwise phenomenal display of ball striking and putting.
Lee found 14 of 14 fairways and 16 of 18 greens, scrambling for pars on the only two holes where she even mildly erred.
Lee, who is yet to win an individual LPGA Tour title, first shot to global prominence in Australia as a teenager almost a decade ago.
She won the NSW women's amateur championship and was runner-up at the Australian amateur championship.
Her reward for Friday's fireworks is a 17-under halfway total.
"I had the best score of my life today so I'm a little emotional," Lee said.
"But since the competition is not over and there is still two more days left, I just want to celebrate this a little bit."
Thai world No.1 Jeeno Thitikul is Lee's closest pursuer, outright second at 14 under after firing a sizzling 63 featuring seven birdies, an eagle and no bogeys.
Japan's Chizzy Iwai and New Zealand's former world No.1 Lydia Ko are a further shot back at 13 under.
Iwai posted a flawless 62, while Ko carded a 64.
Hannah Green is the leading Australian in a tie for fifth at 12 under after shooting a bogey-free 65.
"The putter was very hot today. I think I had maybe seven one-putts on the back nine," Green said.
"Missed a couple greens and also made some really good par saves as well as some really good birdie putts.
"Overall, pretty solid. Didn't make too many mistakes. Felt like yesterday was maybe a couple hiccups with decision making, but, yeah, today was much better."
Also playing her first event of the year, fellow Australian major winner Grace Kim could only manage a 68 on a day of hot scoring to move to nine under and into a share of 10th spot.
Cassie Porter followed up her opening 67 with a 70 to be joint 23rd at seven under.
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