Karim Benzema hit a third for the visitors early in the second period, before James scored his second late on.
Here, Sports Mole dissects the 90 minutes of action between the two Spanish rivals.
On target: 4
On target: 8
Was the result fair?
Real Madrid were far too good for Granada. It was not really a case of the visitors playing brilliantly or the hosts performing particularly badly - there was just an obvious gulf between the two teams. Madrid's first and fourth might have been avoidable from the home side's perspective, but their second and third goals were just exceptional. The second half was a slight non-event for long spells, with Real saving their energy and Granada struggling for motivation after falling three goals behind less than 10 minutes after the interval. Overall, the away side deserved to run out comfortable winners.
The home side lined up with a 4-4-2 formation on their own patch, with Jhon Cordoba and Isaac Success both starting in what was an exciting and threatening front two. However, it was Granada's willingness to commit players forward in the early moments that ultimately proved their undoing. With Madrid in such strong form, it was important to gain an early foothold in the match, but the hosts were behind just two minutes into the contest. Granada did have their moments in the first period, especially on the counter-attack, but clear chances were few and far between as the match progressed. A quick look at the statistics will show that the home side had five attempts on target, but really only one of those was a definite opportunity to open their tally. Granada will just be glad that they do not have to face Real Madrid every week.
Real Madrid's performance
Another week, another strong Real Madrid performance. It would be fair to say that Los Blancos struggled in the early part of the season, but they are not struggling now. In fact, the capital outfit have now won their last seven in the league, after losing two of their first three games of the season. The visitors played much of this match in second gear and still managed to score four times without conceding, which is worrying for their direct rivals. Ronaldo, Benzema and James all linked well as a front three, while Luka Modric and Toni Kroos controlled the middle of the park. Defensively, Carlo Ancelotti's side also looked strong despite a couple of nervy moments. Overall, it was another overwhelmingly positive afternoon for the 10-time European champions, who will take some shaking off the top of the table.
Sports Mole's man of the match
Cristiano Ronaldo: What more can be said about the Portuguese? This match saw the attacker net his 17th league goal of the season, with that tally coming in just nine games. It was not just about his goal, however, with Ronaldo playing a big role in his side's first of the afternoon and also setting up Benzema for their third with a cheeky back-heel. It was more of a team performance from the 29-year-old, who seems on course to break more records this season.
Granada's best chance of the match came midway through the second period when Ruben Rochina - who had just entered from the bench - found some space inside the Madrid box. However, instead of striking his effort first time, the attacker decided to take a touch and turn, which allowed Sergio Ramos to make a crucial block. It was fine defending from Ramos, but it was a chance that really should have been taken first time. Opportunities were not exactly frequent for the hosts.
Referee Jose Gonzalez had a fairly comfortable afternoon. The Spanish official issued just the three yellow cards - two of which came in the first period. It was not a particularly untidy match in terms of challenges and in truth, Gonzalez was not seen for long spells, which is always a good sign for a referee.
Granada: Next up for Granada is a trip to in-form Celta Vigo next Saturday.
Real Madrid: Los Blancos are in Champions League action at home to Liverpool on Tuesday, before returning to their La Liga duties at home to capital rivals Rayo Vallecano next Saturday evening.