Following Saturday's 1-0 success at Chelsea, the Foxes recovered from Bernardo Silva's 14th-minute opener to secure their eighth top flight victory of the 2018/19 season.
Leicester were relentless in their search for another and they were unlucky not to complete the turnaround sooner, but Ricardo Pereira’s 81st-minute winner was worth the wait.
In front of a capacity crowd, the 25-year-old lashed home a cleared Albrighton corner to settle a fascinating encounter before Fabian Delph was dismissed for the visitors in the 89th minute.
Puel had named an unchanged XI from Saturday’s 1-0 win at Stamford Bridge – meaning a third successive start for Academy graduate Hamza Choudhury.
Manchester City's opener was typically slick from the 2018 champions as Sergio Agüero slotted a pass into Silva's path, who duly obliged to convert a low finish beyond Kasper Schmeichel.
Ricardo Praises King Power Stadium Atmosphere
Ricardo Pereira praised the atmosphere at King Power Stadium after he fired in the winner against Manchester City.
However, Leicester refused to lie down and, when Vardy floated it in for Albrighton, the 29-year-old winger nodded it back across goal and into the far corner, past Ederson.
With the scores locked at 1-1 midway through the first half, the Foxes were exhibiting their very best in attacking positions, pushing Pep Guardiola’s title holders back.
While Manchester City also carved out chances – most notably a close-range miss from Agüero in the 37th minute – Leicester's industry in front of goal was difficult for them to contain.
A frantic passage of play just before the break saw Vardy, Choudhury and James Maddison force Edersen into a succession of remarkable close-range saves.
The talented Brazilian jumped into action when Vardy seized on a loose ball and ran at goal, prompting him into making a fine one-on-one save.
Maddison also tried his luck – again being denied by the 25-year-old. It then landed at the feet of Choudhury at the far post and, remarkably, Edersen was there yet again to get a hand on it.
He also stopped another Maddison effort, too, as the Foxes were left wondering what they needed to do to take the lead in a thrilling festive encounter on Filbert Way.
A tense affair continued to fascinate after the break with Maddison, Agüero and Leroy Sané all trying – but failing – to find the net from distance for their respective teams.
However, following Ricardo’s sumptuous goal nine minutes from the end, Leicester were defensively magnificent, chasing down every loose ball and keeping their guests at bay.
The odds of them of seeing out the victory were aided further when Delph was shown a straight red for a challenge on Ricardo, but the strength of Leicester’s character saw them through to victory.
The Foxes boss calls for calm in the second half as Leicester protect their lead.
Claude Puel’s decision to bring on Danny Simpson, thus pushing Ricardo further upfield, allowed the 25-year-old to be in just the right place at the right time in the 81st minute.
If not for that tactical shift – just three minutes earlier – it’s possible that Ricardo wouldn’t have been where he needed to be to score one of the most memorable goals of the 2018/19 campaign.
Marc Albrighton is a source of both attacking endeavour and defensive solidity.
On yet another occasion, Marc Albrighton’s value for Leicester was on show for everyone to see on Boxing Day, scoring the hosts’ first and playing a key role in their second as well.
But his game is about more than attacking, with the 29-year-old contributing heavily in defensive positions to provide the Foxes with a springboard to build counter attacks on.
Where do we stand?
City 'keeper Kasper Schmeichel celebrates Marc Albrighton's equaliser.
Leicester climb up to seventh in the Premier League standings, just four points behind Ole Gunnar Solskjær’s rejuvenated Manchester United, after playing against all of their top flight rivals.
Claude Puel’s men have so far secured eight victories from 19 matches, alongside four draws, meaning their points tally stands at 28 at the half-way point.
The City right-back is congratulated after scoring his second goal for the Club.
The festive football continues on Saturday with the visit of Cardiff City to King Power Stadium in the Premier League (3pm GMT kick-off).
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