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Watford were off the mark after four minutes and if anything their 3-0 interval lead flattered bemused City.
Watford squandered more chances than they put away and for a period they had to be content with an early lead.
That was scored by Stephen Glass who returned to the side and rounded off a three-man move with a clinical finish.
Watford created another clear opening when Neal Ardley sent Tommy Smith away on the right, but although he chipped the ball over the keeper his attempt when wide of the far post.
Smith was back again breaking clear on a pass from Glass, but his second touch providered Morten Hyldgaard with a chance to intervene.
When Ardley found Danny Webber in the heart of the penalty area, the striker on loan from Manchester United pulled the ball down but a great tackle by Calum Davenport saved the day.
Next Marcus Gayle slid the ball through for Smith to go clear again, but this time he placed the ball wide of the keeper and the post.
City came back and a Gary McAllister free-kick was headed off the line by Neil Cox and Alec Chamberlain had to go full length to push a David Thompson shot around the post.
Back came Watford with Smith crossing and Paul Robinson seeing his downward header blocked by the keeper's feet.
Watford finally broke through again after 34 minutes with Webber sending Smith clear to score his first goal since January.
Early in the second period Allan Nielsen wasted a chance to make it 4-0, from Smith's run and cross down the left.
Just after the hour Nielsen did add a fourth, calmly sidefooting past Hyldgaard from around the penalty spot, with the Sky Blues defence posted missing.
Nineteen minutes from time Robinson completed a nap hand, smashing the ball beyond the visitors' keeper after good interplay with Smith.
Gary McSheffrey netted four minutes before the end and John Eustace scored deep into injury time to give the visiting fans something to celebrate, but the goals made little difference to the final outcome