Goals from Walter Pandiani and Julian Gray separated the sides as Blues followed up their 1-0 victory at Anfield in November with a fine display.
Steve Bruce made three changes from the team that did well at Old Trafford a week ago. At the back, Matthew Upson returned in place of Martin Taylor. In central midfield, Stephen Clemence was brought back in to partner Damien Johnson at the expense of the unlucky Mehdi Nafti, whilst Robbie Blake dropped to the bench as Emile Heskey came back to partner Pandiani for the first time.
Blues started the game brightly, and it was obvious very early on that the side were very much up for the game. Liverpool on the other hand looked a team lacking any real ideas. There weren't many chances early on, but Gray and Jermaine Pennant were causing problems down the flanks, whilst Pandiani and Heskey were winning their battles against Sami Hyypia and Jamie Carragher with ease. Surprisingly too, in midfield, Clemence was on top in his personal dual with Steven Gerrard.
There was a setback for Blues after about 17 minutes when Mario Melchiot had to limp out of the action after a clash with Gerrard. Olivier Tebily replaced the Dutchman at right-back and proceeded to turn in possibly the worst performance ever by a professional footballer during the rest of the first half. It was seriously as if it was a different person there.
Blues did start to create half chances as the half wore on. Heskey and Pennant both had efforts blocked after Pandiani had volleyed wide from a very tight angle. Blues began to open the visitors up even more, and Pennant should have done better when he was played in and was one-on-one with Jerzy Dudek. Dudek though narrowed down the angle and Pennant couldn't capitalise on his position.
After 37 minutes, Blues took a deserved lead. Kenny Cunningham hit a ball forward for Heskey to latch onto in the area. Heskey - who was battling with Hyypia all afternoon - was dragged to the floor by the Finnish central defender, and Howard Webb had no hesitation in pointing to the spot. Pandiani grabbed the ball and following Dudek's attempts at wasting time to put him off, duly slammed the ball into the roof of the net, sending the Polish 'keeper the wrong way.
Almost immediately John Arne Riise failed miserably with a far post header, as Liverpool sought to hit straight back before the break. It was Blues though who struck again to double their advantage just before half time. Jamie Clapham's deep cross was retrieved by Pennant who turned Djimi Traore inside out. Pennant's cross flashed across goal and Gray met it superbly with a left foot volley that flew past Dudek to settle Blues' nerves even more before the break.
At half-time Rafa Benitez replaced Igor Biscan with Vladimir Smicer, but in truth it did little to help Liverpool. Blues continued to dominate all over the park. It was actually incredibly refreshing to see a Blues team play for 90 minutes. One criticism of the Steve Bruce era has been the tendency to drop too deep and attempt to defend leads for prolonged periods of time, and it's been Blues' undoing on countless occasions. This time though, the team kept going, and if there was to be another goal in the game, it only looked as if it would be from Blues.
The second half was pretty devoid of chances, but Pandiani and Heskey continued to bully the Liverpool defence as Blues showed for the first time in a long time that they had a genuine, genuine two-pronged threat in attack. Clemence too continued to dominate in midfield as Gerrard's frustration resulted in the England midfielder kicking out at anything that moved in a blue shirt.
As the game drew to a conclusion the away end at St Andrews emptied to levels only previously seen when Aston Villa were 3-0 down two seasons ago. Milan Baros hit a weak shot wide, but Blues continued to press - Upson even had a go on the left wing briefly as the chants of 'Ole!' greeted Blues' passing. By the full time whistle, Maik Taylor had not had one shot to save.
This was obviously a big win for Blues that helped them mover further clear of the relegation places. What was even better news though was the way Blues played - some really good football, for a full 90 minutes. I can't remember ever writing that about a Blues performance before. Well, not against any team other than our near neighbours.
Blues: Maik Taylor, Melchiot (Tebily 18), Cunningham, Upson, Clapham, Pennant (Nafti 84), Johnson, Clemence, Gray, Heskey, Pandiani (Blake 89). Subs Not Used: Bennett, Anderton.
Booked: Tebily, Heskey.
Liverpool: Dudek, Finnan (Pellegrino 79), Hyypia, Carragher, Traore, Baros, Hamann, Gerrard, Biscan (Smicer 45), Riise (Nunez 63), Morientes. Subs Not Used: Warnock, Carson.
Att: 29,318.
Ref: H Webb (S Yorkshire).