Goals from Freddie Hinds, Bobby Reid and Niclas Eliasson put the visitors through to the third round. Watford finished with 10 men after Jose Holebas was sent off.
Eight wins and a draw in their last nine games had seen Leicester emerge as the closest pursuers of runaway leaders Liverpool but they went down 3-1 at the Etihad despite taking an early lead through Jamie Vardy. Images from the English Premier League matches played on Saturday.
Tottenham Hotspur routed Bournemouth 5-0 as they leapfrogged City into second place in the league, six points behind leaders Liverpool who thrashed Newcastle United 4-0.
Only two teams -- Chelsea in 2005-06 and Manchester City last season -- have had more points after 18 Premier League games in a season than Liverpool's 48.
Crystal Palace heaped more misery on Liverpool when they came from behind to win 3-1 in the Premier League on Sunday, six months after effectively ending the northern club's title hopes when they drew 3-3.
Sunderland striker Steven Fletcher scored in each half to help his beleaguered side earn a much-needed 3-1 win at Crystal Palace in their Premier League match at Selhurst Park on Monday.
Chelsea to host Burnley in Premier League season ope
Manchester United midfielder Michael Carrick will miss the final three games of the Premier League season with a calf problem, manager Louis van Gaal said on Friday.
Chelsea reached the League Cup quarter-finals thanks to two own goals in a 3-2 win over second-tier Derby County on Wednesday as Frank Lampard's return to his former club ended in disappointment.
Chelsea went second in the Premier League with a comfortable 4-0 win at Burnley, on Sunday, which maintained their unbeaten start to the season.
News of all that tranpired on and off the football field.
Tottenham Hotspur have shown impressive durability in the Premier League lately, but they will need to be at their most steadfast to deny champions and league leaders Manchester City who travel to Wembley on Monday.
Manchester United midfielder Paul Pogba will miss his side' s Premier League clash against Southampton on Wednesday as he has to attend his father's funeral.
'The accumulation of the games, I never had that'
The points table of the English Premier League 2016-17 season.
Third-placed Leicester go to Hodgson's sixth-placed Crystal Palace on Sunday
Jose Mourinho admitted that Sunday's 2-0 defeat to Arsenal means it will now be "impossible" for Manchester United to finish in the top four.
'I think they're in a big fight now'
Hull City and Swansea City earned valuable victories in their battle for Premier League survival but Middlesbrough slid further towards the drop after a 4-0 hammering at Bournemouth.
Arsenal kept alive their slim hopes of securing a Champions League spot next season with a 2-1 Premier League victory at Middlesbrough on Monday that left the hosts in deep danger of relegation.
'We lost two games but these two games were totally different. Against Crystal Palace we didn't deserve to lose. Today we deserved to lose the game'
Juergen Klopp has said his Liverpool team must be prepared to play ugly football to secure Champions League qualification following the injury to productive forward Sadio Mane ahead of Wednesday's Premier League clash against Bournemouth.
Premier League leaders Chelsea are focused on getting results in their remaining nine games as they fight for the title, instead of dwelling on Saturday's 2-1 loss to Crystal Palace, manager Antonio Conte said.
Chelsea is currently at the fourth place in the Premier League standings with 63 points from 37 matches.
Images from Sunday's English Premier League matches.
West Bromwich Albion have named former Stoke City and Crystal Palace boss Tony Pulis as their head coach, the Premier League club said on Thursday.
'From the very start, PM Modi was insistent that visiting foreign leaders should be exposed to an India beyond its capital.' 'Through these experiences, he felt that the full Indian narrative would be much better understood across the world,' explains External Affairs Minister S Jaishankar. A riveting excerpt from Bluekraft Digital Foundation's Modi@20: Dreams Meet Delivery.
Chelsea manager Antonio Conte reiterated his commitment to the Premier League leaders on Friday, following media reports that he was finding hard to adjust to life in England without his family.
Chelsea are now 11 points ahead of Manchester City who have 13 games left to play and while Italian Conte is too cagey to start proclaiming his side yet, only a monumental loss of form can deny them the title.
Chelsea kept up their 100 percent start to the English Premier League season by snatching a 2-1 win at a stubborn Newcastle United on Sunday, grabbing victory thanks to a late own goal by DeAndre Yedlin.
Images from the English Premier League matches played on Sunday night
Argentina defender Marcos Rojo dislocated his shoulder in Manchester United's 1-0 defeat at Manchester City on Sunday, their manager Louis van Gaal confirmed.
Liverpool suffered a shock 2-1 loss to Championship side Wolverhampton Wanderers in the FA Cup fourth round on Saturday, handing manager Juergen Klopp a third home defeat in a row.
The Dimitri Payet saga may have been preying on the minds of West Ham fans of late but the swaggering talent of big Andy Carroll is helping them forget all about the unseemly sideshow involving their French midfielder.
Images from the English Premier League matches played on Saturday.
The following are talking points from the Premier League weekend:
Tottenham Hotspur steamed into the top four with Harry Kane marking his 100th Premier League appearance with a double in a 4-1 thrashing of Watford on Sunday.
CrystalPalace striker Marouane Chamakh ended an 11-game barren streak to help them beat fellow Premier League strugglers West Ham United 1-0 in manager Tony Pulis's home debut on Tuesday.
List of major transfers in the top Premier League ahead of the 2019-20 season (all transfer fees as reported by British media):
Sadio Mane struck four minutes into stoppage time to give Liverpool a last-gasp 1-0 win over derby rivals Everton that lifted them into second place in the English Premier League.