The victory was made possible by second-half doubles from Sergio Aguero and Carlos Tevez following David Silva's opener and allowed Roberto Mancini's men to go a point clear on top of the table after Manchester United were stunned by Anthony Pilkington's header to lose 1-0 at Norwich City.
The Toffees were surprisingly beaten 2-1 by Reading at the Madejski Stadium to fall to fifth with Arsenal going within a point of them thanks to a big 5-2 home win over arch rivals Tottenham in the North London derby.
Ex-Gunner Emmanuel Adebayor turned hero to villain for Spurs as he was sent off for a reckless tackle after scoring an early opener and his absence opened the door for Arsenal to pile on the goals at the Emirates Stadium.
Elsewhere, Southampton heaped more pressure on QPR with a 3-1 victory at Loftus Road in the battle of the cellar dwellers, Luis Suarez became the first player to 10 Premier League goals with a brace in Liverpool's 3-0 home win over Wigan Athletic and Swansea City returned to the winners list with a 2-1 win at Newcastle United.
2012/13 Barclays Premier League scores
Arsenal: 5 (Per Mertesacker 24', Lukas Podolski 42', Olivier Giroud 45+1', Santi Cazorla 60', Theo Walcott 90+1') Tottenham: 2 (Emmanuel Adebayor 10', Gareth Bale 71', red card: Adebayor 18') Emirates Stadium, London - 60,111