Toni Duggan scored from the spot after 15 minutes before Izzy Christiansen capitalised on a defensive mix-up to secure the points 20 minutes from time.
The only sour notes on an otherwise perfect day were injuries sustained to Duggan and Lucy Bronze on either side of half-time.
That aside, it was a day where Player of the Match Keira Walsh was indomitable in midfield, setting the tone for what was a dominant performance from the home side, giving them an astonishing ninth victory in their last ten games.
City had already secured their passage to the quarter finals courtesy of a 2-0 win over Everton on Thursday but could they continue their 100% record in the group stages?
Liverpool stood in the way and they arrived into this game in ominous form after defeating Sunderland last time out.
Manager Nick Cushing made three changes to the team which started against the other Merseyside team, bringing in Demi Stokes and Nikita Parris, as well as Bronze who was facing her former team.
Clearly buoyed by their imperious recent form, City made a flying start to the game and immediately set about putting the Liverpool goal under pressure.
Krystle Johnston’s long ranger had Libby Stout worried and the Reds’ keeper was concerned again when an undercooked backpass was nearly ran down by Nikita Parris inside the opening ten minutes.
However, there was nothing Stout could do about the goal that broke the deadlock a quarter of an hour in.
Parris was this time rewarded for her pressing from the front when she ran in behind the away defence but a cynical shirt-pull from Satara Murray abruptly halted her run and the referee had no option but to point to the penalty spot.
Murray was perhaps fortunate not to receive her marching orders for the foul as she was the last defender but Duggan ensured that the foul was decisively punished by coolly dispatching the spot kick to Stout’s left.
The visitors did come back into the game and begun to assert some pressure of their own and they would have equalised on the half hour mark if it wasn’t for Bronze.
Natasha Dowie was through on goal and ready to pull the trigger but the England full-back tracked the run and timed her tackle to perfection to preserve City’s narrow advantage.
Sadly, Lucy had a price to pay for that incredible interception as she seemed to twist her ankle in the process and so she was replaced by Abbie McManus five minutes later.
That wasn’t the last injury City suffered in the match as shortly after half-time Duggan was withdrawn following what had looked like a fairly innocuous clash with Dowie.
Liverpool had their best spell of the match in the 15 minutes that followed but Karen Bardsley was practically untested as the domineering pair of Jennifer Beattie and Steph Houghton stood firm, winning a number of aerial duels and making timely interventions.
With 20 minutes to go, City made sure of the victory with a breakaway goal from the tireless Christiansen who tackled Stout and headed the loose ball into the empty net.
2-0 was how it stayed to continue MCWFC’s golden streak with Sunderland up next in the league on 6 September.
After the game Nick Cushing said: “The game turned out the way we wanted it to turn out.
“We want to dominate the ball, we want to play an attractive style of football and we haven’t changed that in any of the games we’ve played. We’ve dominated the ball for 90 minutes today, and created some really good opportunities to score and I’m really pleased.
“We’ve seen in the last few games, every team we’ve played be it Bristol, Birmingham, Liverpool or Arsenal they’ve all sat with 11 players behind the ball and try to block us as they know we play the best style of football in the League.”