Goals from Tom Dele-Bashiru, Sadou Diallo and Lukas Nmecha were enough to see City progress despite the first half equaliser of Liverpool’s Rhian Brewster.
Dynamic running from wingers Jadon Sancho and Brahim Diaz in the early periods allowed City to work their opponents across the pitch but it rarely materialised into chances until Dele-Bashiru’s opener on the half-hour mark.
Sancho twisted past right-back Kris Owens before squaring the ball. His cross was turned away but only to Dele-Bashiru, who fired home with his left foot from 18 yards.
Although City could have doubled their lead moments later; it was Liverpool who actually found the net next. A rare foray into the City half saw a cross fall to the feet of Rhian Brewster, who fired into the roof of the net.
The crucial goal did come before the hour mark however as Sadou Diallo met a Phil Foden corner first and headed inside the far post.
City sealed their safe passage with less than 15 minutes remaining as a delightful cross was met by the glancing header of Lukas Nmecha that left Grabara standing.