Raheem Sterling broke the deadlock after only three minutes, but Leicester City responded well to that setback and Jamie Vardy sent the sides into the break all square with an equaliser midway through the first half.
However, Sergio Aguero stole the show in the second half with four goals to fire the hosts to a 19th consecutive home win across all competitions.
Find out how all of the action unfolded courtesy of Sports Mole's minute-by-minute coverage below.
The runaway league leaders are bidding to take another step towards the title this afternoon, but they come up against a Leicester side eager to get back to winning ways and perhaps eager for revenge after Man City turned the head of star player Riyad Mahrez during the January transfer window.
We will take a closer look at that saga and both clubs in a short while, but first - does the Algerian make it into the starting lineup here...?
I will talk about that a little later, but let's start by looking at the home side's team news, and the headline on that front is that record signing Aymeric Laporte returns to the starting lineup after sitting out against Burnley last weekend. Laporte returns at the heart of the defence alongside Otamendi, with Kompany missing out and Stones also having to make do with a place on the bench following a recent knee injury.
The Argentine has found the back of the net 10 times in his past six outings here across all competitions, and another goal this afternoon would see him score in seven consecutive home games for the first time in his glittering Man City career.
Fortunately for him, there will be no shortage of players able to step. The continued absence of Leroy Sane and David Silva means that Bernardo keeps his place in the front three alongside Raheem Sterling, who despite his incredible miss against Burnley last weekend, has been in sensational form this season.
Indeed, there are only two changes from the draw with Burnley last weekend as Kompany and goalscorer Danilo make way to be replaced by Laporte and Zinchenko.
Mahrez was desperate to join today's opponents and was reportedly furious with Leicester for demanding a deal worth £95m, which forced City to pull out. Mahrez subsequently went AWOL from training - if reports are to be believed - but he returned on Friday and is straight back into the matchday squad today.
He certainly didn't look too unhappy when arriving for the game earlier today...
The England international has scored more goals against top-six clubs than any other player since his Premier League debut in August 2014, netting 22 times in 42 such appearances.
Vardy has three previous goals against Man City too, but they all came in the same game as he netted a hat-trick in a 4-2 win in December 2016.
The Foxes have named two left-sided defenders in Chilwell and Fuchs, and one of those could fill in for Simpson on the right, or Albrighton could potentially play there with Chilwell in left midfield. James is the other man to come in, replacing former Man City striker Kelechi Iheanacho in the side.
City have begun to drop points on a more regular basis in recent weeks - although still at a lesser rate than almost every other team in the league - and were held to a 1-1 draw against Burnley last time out despite dominating the game from start to finish.
Indeed, City's tally of 69 points is the most after 26 games of a top-flight league season in English football history, and is already a whopping 17 points better off than they were at the same stage of last season.
That means that victory for City this afternoon would see them move 16 points clear, which is a very healthy lead going into a period where other cup competitions will take centre stage. Indeed, this is Man City's final Premier League game until March 1.
After today's match they will take on Basel in the first leg of their Champions League last 16 tie, before playing Wigan in the fifth round of the FA Cup. After that is the EFL Cup final against Arsenal - a chance for Man City to get that first trophy under Guardiola - before they finally return to league action - against Arsenal again - on March 1.
The big matches do not end there for Man City, though, as Chelsea are next up after the Gunners before the second leg of their Champions League tie.
In the Premier League alone City have lost just one of their last 38 games, winning 28 of those in a run which extends back to April 2017. Guardiola's side have not been beaten by a team outside the top five since January 2017 either, which gives an idea as to the magnitude of Leicester's challenge here.
Everton were the last visiting team to avoid defeat here back in August, and you have to go all the way back to December 2016 - 34 matches ago - for their last loss on home soil.
City have done it in style too, scoring three or more goals in 10 of their ongoing 12-match winning streak, including each of their last five. Another three-goal haul or better this afternoon would equal a club record last achieved in December 2013.
However, Leicester's record away to the big teams has grown worse in recent years, and you have to go back to their 3-1 win at this very ground in February 2016 for their most recent victory away to top-six opposition. Since then, they have drawn four and lost nine of their 13 such matches, picking up only four points from a possible 39.
Of course, Leicester were top of the table themselves not too long ago, and their remarkable 2015-16 title success will live long in the memory, but they are certainly bigger underdogs going into these matches now than they were during that incredible run.
Most of the bottom half will consider themselves in trouble, but Leicester began the day with a 12-point gap to the bottom three and have surely done enough to ensure that they will be safe now. The Foxes' main battle for the remainder of the season may be for seventh place, with Burnley just a point better off than them.
The Foxes have generally seen a big upturn in form since Claude Puel took over at the club, and in 2018 so far they have lost just one of their eight matches across all competitions in 2018.
Looking further back than the start of the year too, Leicester have won just two of their last nine Premier League outings - against Huddersfield and Watford - while losing four in that time.
Puel's side have lost three times and drawn twice on the road in that time, while in the Premier League alone they have taken only one point from the last 12 on offer away from home.
Leicester have also only kept two away clean sheets all season as they prepare to come up against the league's highest home scorers, although one of those clean sheets did come against Chelsea last month.
It is hard to see anything other than a Man City win here in truth. Leicester have the players to put up a fight for sure, but you simply cannot back against Man city when they are in such good form, particularly at home. It may be a fairly comfortable one for Guardiola's side too.
SPORTS MOLE SAYS: Man City 3-0 Leicester
The Foxes have won four of their six previous Premier League away games against Man City, with only Tottenham able to match that win tally down the years.
Indeed, defeat this afternoon would see them fall to three successive league losses at the hands of Manchester City for the first time since 1961.
Vardy and Bernardo scored in normal time in that match, but none of the players who scored on Leicester most recent visit to the Etihad - when they lost 2-1 - will feature this afternoon.
MAN CITY STARTING XI: Ederson; Walker, Laporte, Otamendi, Zinchenko; Fernandinho, Gündogan, De Bruyne; Sterling, Bernardo, Aguero
LEICESTER STARTING XI: Schmeichel; Fuchs, Maguire, Dragovic, Chilwell; Silva, Ndidi, James, Albrighton, Diabate; Vardy
He missed a seemingly unmissable chance last weekend, but he makes no such mistake this time around. The ball from De Bruyne is typically brilliant, bending an inch-perfect delivery into the far post which Aguero just misses but Sterling is there to tuck home from all of two yards out.
36942 assist from De Bruyne 😂 pic.twitter.com/XTlhcF4can— Benjamin Mendy (@benmendy23) February 10, 2018
Raheem Sterling puts Manchester City 1-0 up against Leicester! Watch his goal below... https://t.co/99vkcYLjEb— Sky Sports PL (@SkySportsPL) February 10, 2018
Man City immediately broke from the resulting corner and it took a well-time challenge from Fuchs to thwart Aguero inside the Leicester area. The counter the counter, though, and Vardy finds himself up against Laporte one on one. The striker shifts the ball onto his right foot and then fires a clinical finish into the bottom corner!
"It's fantastic from Vardy. One-versus-one, Zinchenko doesn't know him as well as other City defenders."— Sky Sports PL (@SkySportsPL) February 10, 2018
That was Jamie Carragher's reaction to Vardy's equaliser. We're level at the Etihad Stadium! Watch his goal below... https://t.co/Rni7uOEzEF
The hosts have dominated possession and territory, but clear chances haven't been as regular as they would have hoped and Leicester have more than held their own so far.
The goal was all down to a magnificent cross into the box from De Bruyne, though, as his curling delivery left both the defence and the goalkeeper helpless to set the ball up on a plate for Sterling.
A misplaced pass from Otamendi gifted possession to the striker, who skipped away from Gundogan before working a yard on Laporte and firing his finish into the bottom corner. It was Leicester first sight of goal, but they took full advantage of it.
Schmeichel has been called upon to deny efforts from De Bruyne and Fernandinho, while Sterling was only denied a second by a last-ditch block from Dragovic after he had taken the ball around the Leicester keeper, although the visitors can expect plenty more questions to be asked of their defence in the coming 45 minutes.
It is a similar goal in many ways as De Bruyne delivers a ball into the box which is impossible to defend, leaving the finisher with a simple tap-in. Schmeichel does actually get a hand to this finish from Aguero, but there was no way the Argentine was going to miss from there.
Sumptuous stuff from De Bruyne once again there.
The Foxes have the chance to clear the danger, but it comes straight back at them and it is no surprise to see De Bruyne do the damage again. He notches his third assist by threading a pass through to Aguero, who fires his finish past Schmeichel. The keeper again got plenty on it, but he could not keep it out.
Aguero puts Manchester City ahead after some fine work from Kevin de Bruyne! Watch his goal below... https://t.co/kMch5sGpFL— Sky Sports PL (@SkySportsPL) February 10, 2018
3 - Kevin De Bruyne has provided three assists in a single game for the first time in his Manchester City career. Repetition.— OptaJoe (@OptaJoe) February 10, 2018
Aguero does not need such simple gifts, but he isn't going to pass them up either and produces an exquisite chip over the hapless keeper for his hat-trick.
20 - Sergio Aguero is the 4th player to score 20+ goals in four consecutive Premier League campaigns - after Alan Shearer, Thierry Henry and Harry Kane. Dink.— OptaJoe (@OptaJoe) February 10, 2018
The Argentine picks the ball up just outside the area and smashes an unstoppable drive in off the underside of the bar. It was central, but the ferocity of the strike meant that Schmeichel had no chance!
City had taken the lead through Sterling's early effort before Vardy levelled things up, but Aguero stole the show after the interval and Guardiola's side march on, now 16 points clear of Manchester United.
Thank you very much for joining Sports Mole for this match as Manchester City blow Leicester away in the second half, with Sergio Aguero the star of the show with four goals. I will leave you with our match report, and be sure to stick around for reaction from both camps.
From me, though, it is goodbye for now.