Claude Puel made seven changes to the side that beat Southampton on penalties four days ago, as Maddison returned from suspension and Jonny Evans, Demarai Gray, Wilfred Ndidi and Vardy all retained their spot in the starting XI.
After a lively opening 10 minutes in which Wes Morgan – donning a special captain’s armband in support of Stonewall’s Rainbow Laces campaign – and Abdoulaye Doucouré both went close, the Foxes were awarded a penalty.
Vardy’s burst of pace saw him round Watford stopper Ben Foster, whose outstretched arms brought down the City attacker. He made no mistake from 12 yards, sending Foster the wrong way to make it 1-0.
Just 12 minutes later, City doubled their lead. A fine pass from winger Marc Albrighton found Maddison, who took a touch before slamming a volley in past Foster for his fourth Premier League goal of the season.
Efforts from Ricardo Pereira and Demarai Gray followed before the break, while Watford came close to pulling one back on 36 minutes after Isaac Success blasted over from a rapid counter-attack.
Demarai Gray’s hunt for a goal continued after the interval, and after good work from Portugal international Ricardo, Leicester’s No.7 smashed the Hornets' upright from a tight angle.
Watford substitute striker Andre Gray, introduced on 55 minutes, had two huge chances to halve the deficit, but he could not capitalise, first sending a free header wide before miscuing from 12 yards.
Then, as the final whistle approached, the Hornets were reduced to 10 men, as midfielder Étienne Capoue was penalised for a two-footed challenge on substitute striker Kelechi Iheanacho.
James Maddison and Jamie Vardy
James Maddison and Jamie Vardy were both on target during the win over Watford at the start of December.
Already 1-0 up thanks to Jamie Vardy’s 11th-minute penalty, James Maddison’s well-taken effort put the Foxes into a deserved two-goal lead.
Creating some breathing space for Claude Puel’s men, Watford never really looked like getting back into the game.
James Maddison and Marc Albrighton
James Maddison thanks Marc Albrighton for his fine pass in the build-up to the City No.10's excellent goal.
Marc Albrighton’s 16th appearance in all competitions for Leicester City this term saw him produce arguably one his most complete performances of the campaign.
His industrious displays make him a vital member of the squad, and that was once again on show against the Hornets on Saturday.
Albrighton produced a brilliant pass to set up James Maddison for City’s second goal of the afternoon, while he also worked tirelessly on both wings right up until the final whistle.
Where do we stand?
Leicester City are now unbeaten in six games in all competitions and now sit seventh in the Premier League table after 14 fixtures. They now sit just one point off sixth-placed Everton, who have a game in hand.
Kasper Schmeichel celebrates his side's second goal of the afternoon.
Just four days after City’s triumph against Watford, they head to the capital to face Claudio Ranieri’s Fulham side at Craven Cottage (7:45pm GMT kick-off).
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