Manchester City responded to their shock defeat at Sunderland on New Year's Day by easing to victory over Liverpool this evening.

Sergio Aguero and Yaya Toure struck in the first half before a James Milner penalty sealed the points late on.

Liverpool, who have travelled well this season, had much of the play in the opening period but were unable to create many chances and failed to convert any they did.

Aguero added to his goal tally for the season when his snap shot went under the body of Pepe Reina in the tenth minute before Yaya Toure headed home David Silva's corner to make it two.

Stewart Downing and Dirk Kuyt squandered the best chances for Kenny Dalglish's men, with Joe Hart and Vincent Kompany blocking well.

The visitors had less control of the game after the break as Roberto Mancini's men looked to secure the points.

Gareth Barry was dismissed for a second bookable offence before Toure surged forward in typical fashion and was brought down by Martin Skrtel. Milner stepped up and sidefooted the ball into the top corner confidently.

City, who have now won all ten of their home Premier League games this season, move three points clear of Manchester United. The Red Devils play their game in-hand at Newcastle tomorrow.