City took a first half lead, getting goals from Vincent Kompany and Ilkay Gündoğan in the 25th and 30th minute, respectively.
Eric Bailly (5) - Noticeably United's best defender usually and it was noticeably not the defenders best day at the office.
Otamendi was reading the game well initially but made a couple of errors in the second half as he let the game flow through him and should have tracked Smalling for the victor.
The Goodison Park match, which did not feature a single booking - a remarkable occurrence amid one of England's fiercest derbies - saw Liverpool soak up a late spell of Everton pressure to stretch their record unbeaten run in Merseyside derbies to 17 games. A slight improvement from him in the second half and he led the line relatively well.
Pogba found himself in the limelight again on Friday afternoon after Pep Guardiola revealed the midfielder, alongside Henrikh Mkhitaryan, was offered to him in January by his agent Mino Raiola.
Nothing in the first half. However, he improved in the second half and put in some crucial challenges although was lucky not to concede a penalty.
It just makes you wonder why he can not perform like that more often.
Hopefully for United fans, yesterday's momentous result marks a much-needed modification to Mourinho's stale approach.
For Paul Pogba, after an insipid first-half display, the ramifications of a defeat weighed heavily on his mind.
At the other end of the table, West Brom's plight only worsened as Swansea City came from behind to draw 1-1 and keep the seemingly-doomed Baggies 10 points from safety with just five games left.
Mexico Senate rebukes Trump over border deployment plans
However, female migrants argue with Trump's claims saying they chose to travel with the caravan for protection. The Mexican government has denied that it is allowing the migrants to travel unimpeded across its territory.
Apple plans to replace Intel chips in Macs with its own
On Monday, when Bloomberg reported Apple was mulling building its own processors for its Macs, Intel's stock fell 5% on the news. With its own chips, Apple would have the freedom to release new product models without relying on Intel's processor roadmap.
Ronaldo scores again but Madrid derby ends all square
The Atletico star is clearly a fan of the video game Fortnite and has already given us a few celebrations inspired by the game. Real Madrid will play Barca on May 7 and for Pique , Zidane's remark was not important to lose sleep over.
"People expect a lot from you when you play for United".
But even Jose said recently you would have to ask Pogba why he hasn't played that well.
The City boss said: 'We have to defend better but that's football.
They have dominated the league - just like Chelsea last season, although in more attractive style - but have fallen short at key moments.
In fact, similar could be said for the United team as a whole. I was a football player, I know how they feel and how uncomfortable a situation it is. They were staring at humiliation at half-time at the Etihad but battered City after the break. He drove United on his shoulders and nearly single-handedly saved them from the cusp of humiliation.
United would certainly have looked like clowns had they continued to play in the same way as they did for the first 45 but clearly the threat of appearing like that before the watching world was enough to snap them out it.
United. That will be progression. Manchester City are all but Premier League champions, but they will need to wait a while longer before it can be made official.
Bayern were a goal up in the Champions League final after six minutes, before two goals in stoppage time from substitutes Teddy Sheringham and Ole Gunnar Solskjaer gave the Red Devils victory in the most dramatic fashion.
And their confidence will have taken another knock at the weekend going into tomorrow's second leg. For Manchester City, it was a minor blip on the road to the league title, but a bigger reminder of the flaws that are slowly coming to the fore in their team, and that is something for Guardiola to address going forward.