Wilfried Bony, Kevin De Bruyne, Kelechi Iheanacho, Yaya Touré and Manu García claimed the goals in a display characterised by youthful energy and intricate one-touch passing. City have now scored 25 goals in their eight home games in all competitions this season, an average of 3.1 goals a game, and advance confidently into the quarter-finals with another home tie against Championship outfit Hull City awaiting them.
After witnessing Manchester United, Chelsea, Arsenal and Leicester City crash out of the competition this week, the Blues will be hopeful of adding silverware to their trophy cabinet in March.
Kelechi stakes his claim for a lead role.
(Kelechi Iheanacho and Kevin De Bruyne celebrate City's third of the night - image via @Squawka)
It was always going to be Kelechi Iheanacho's night.
With his face on the front cover of the matchday programme and a chorus of City supporters demanding that he be included in the starting eleven, the 19-year-old was under pressure to perform after impressing in various cameos across the season. But with a cool combination of confidence and composure well beyond his years, Iheanacho delivered the goods; scoring a goal and registering two assists in the 5-1 victory.
The Nigerian's link up play with Kevin De Bruyne gave the Etihad Stadium an exciting view of the future. The pair connected brilliantly to provide one another with goals - Iheanacho's unselfishness for the Belgian's tap in showcased his maturity in front of goal - and could be given the chance to intertwine again against Norwich City on Saturday.
Fernando the unsung hero.
(Fernando has looked a different player this term after a disappointing first season at the Etihad Stadium - image via MCFC Official Facebook)
Iheanacho will snatch the headlines, but the best player on the pitch was Fernando. Maligned last season for his sloppiness in possession and clumsiness in the tackle, the former Porto midfielder has reinvented himself as one of City's more assured individuals this term.
With Yaya Touré operating in a deeper role against Palace, it was Fernando who bombarded forward and joined in with City's attacking play. The Brazilian created two clear cut chances and spawned a number of counter attacks for the Blues on Wednesday night in a dominant midfield performance that will leave Manuel Pellegrini with selection issues ahead of the weekend.
Kevin De Bruyne; the machine.
(De Bruyne netted City's second goal of the night - image via Michael Steele/Getty Images)
Judging by Kevin De Bruyne's start to life in Manchester, it would have been impossible to find a better fit for this City side in the summer transfer window.
The 24-year-old, signed from Wolfsburg for £54m in August, raised his tally to six goals and five assists in his first nine appearances with a goal and an assist against Palace. Interestingly, the Belgian's enormous fee has been absent in the weekly match reports lauding him for his brilliance on the field; but with a record like that, there's no need to mention it.
De Bruyne has hit the ground running since landing at Manchester airport two months ago and is already being touted as a future legend by enthusiastic City fans.
Caballero isn't a man after our own Hart.
(Willy Caballero failed to impress once against on Wednesday evening - image via Tom Dulant/Getty Images)
City's second choice goalkeeper hasn't had many opportunities to stake his claim for a starting spot in Pellegrini's side since signing for the Blues in July 2014, but he has failed to take the few chances he has been given.
His unsteady display in the 4-1 loss to Tottenham Hotspur in September saw Joe Hart reclaim his place immediately and the Englishman will have no concerns over returning to the eleven this weekend after watching the Argentine fail to impress yet again on Wednesday.
The 34-year-old failed to deal with a number of crosses throughout the 90 minutes but was spared embarrassment by some questionable finishing. His poor positioning, however, was punished by Damien Delaney who headed in a consolation goal for the visitors in the dying minutes.
Can City win the cup?
(City won the Capital One Cup in 2014, beating Sunderland 3-1 - image via www.standard.co.uk)
After being handed a favourable quarter-final home tie against Hull City, the answer has to be yes.
Manchester United were the latest Premier League giants to crash out on Wednesday night and join Arsenal, Chelsea and high-flying Leicester City in the graveyard of the competition. Bar an unlikely upset, City will be expected to go on and claim the trophy with the talented squad they have at their disposal.
