The visitors took just two minutes to open the scoring, with Cristiano Ronaldo rattling in his 17th league goal of the season.
There was to be one more goal in the first period, with James Rodriguez making it 2-0 to Los Blancos before the break.
Karim Benzema made it 3-0 after 54 minutes, before James grabbed his second late on.
Read how it all unfolded in Sports Mole's minute-by-minute live commentary of the action below.
GRANADA: Roberto; Nyom, Babin, Murillo, Carlos; Foulquier, Iturra, Eddy, Sissoko; Cordoba, Success
REAL MADRID: Casillas; Carvajal, Pepe, Ramos, Marcelo; Kroos, Modric, Isco; James, Benzema, Ronaldo