Run away Premiership leader, Liverpool has been dumped out of the FA cup competition to record their third successive defeat across all competition.
It took only thirteen minuted of play before Brazilian, Williams found the back of the net for the Blues before Englishman Ross Barkley doubled their lead after the restart.
Atlectico Madrid was the first team to beat the Reds two weeks ago before Watford mauled them 3-0 during their last domestic league outing.
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They would now focus on their champions league second leg clash with Atletico at An field next week.