City put out a very young team agains the Blues at Stamford Bridge and were comprehensively beaten 5-1 on the day.
Despite the loss, the inexperienced City players more than acquitted themselves well with impressive performances and former defender Lake believes that the likes of Tosin Adarabioyo, Manu Garcia and David Faupala can be proud of their performance.
Lake told the Manchester Evening News: "There were two or three players that really stood out.
"Tosin coped well with Diego Costa in the first half, Manu was (David) Silva-esque in his movement and quality, and Faupala up front was superb. Faupala had not even started many games for the under-21s and yet on that stage he thrived.
"He and Kelechi had probably trained together for the first time last week as a striking partnership, and the Garcias and (Bersant) Celina were up against what was arguably, last season, the strongest midfield in the Premier League and who are now back in peak form.
"All those things considered, they coped particularly well. They adjusted, they applied themselves, there was no fear.
"It has also put one or two question marks into Pellegrini's head before the season ends – he might consider starting Manu and even having Tosin take the place of Martin Demichelis as the alternative centre back, as he coped admirably.
"If those lads had had a really poor game, it could have been their chances scuppered forever – gone in one fell swoop."