Liverpool U18s crashed out of the FA Youth Cup with a 1-0 defeat to Watford on Monday night.

The presence at Anfield of derby heroes Steven Gerrard and Jamie Carragher was not enough to inspire the class of 2010, who struggled to get out of the blocks.

Sammy Lee, Dani Pacheco and Jay Spearing were also in the directors' box to see Rodolfo Borrell's first Cup campaign end at the fifth round stage.

This despite a steady start for Liverpool, who came close to making a breakthrough on 12 minutes when skipper Conor Coady leaped highest for Tom Ince's corner only to see his header blocked on the line by teammate Michael Ngoo.

Instead it was the visitors who fired themselves into the lead from the penalty spot on 18 minutes when the referee adjudged Stephen Sama to have fouled Watford captain Eddie Oshodi. Piero Mingoia stepped up at the Kop end and sent Reds stopper Deale Chamberlain the wrong way.

It might have been 2-0 minutes later when Oshodi connected on a corner from the left before drifting wide with his head.

The young Reds almost responded when James Ellison worked himself into a yard of space in the Watford box, but the 18-year-old chose precision over power and saw his shot saved.

Dalla Valle then thundered against the hoardings from 25 yards, while at the other end Mingoia shot straight at Chamberlain after stealing the ball from the fearless Jack Robinson.

Coady again had a header blocked but it was the Reds who trailed as the teams went in for their half-time break.

Gaffer Rodolfo Borrell was clearly unsatisfied, using the interval to introduce Kristjan Emilsson and Krisztian Adorjan in place of Ngoo and Ellison.

It was a full 18 minutes before the re-jigged line-up mustered a serious shot on target, and even then it was from a set-piece following a foul on Michael Roberts. Dalla Valle, who scored a hat-trick in round four, instantly grabbed the ball but his 20-yard blast crashed into the wall.

Watford had a golden opportunity to extend their lead when substitute Chez Isaac ballooned over from 10 yards.

Next Matty Whichelow forced a decent save from Chamberlain before hitting the side netting with the rebound.

Left-back Robinson headed over from a corner but Liverpool were struggling to impose themselves.

Indeed it was Watford who were creating the better chances, the impressive Whichelow drilling marginally wide from 25 yards.

The closest Borrell's troops came to a leveller arrived with five minutes left on the clock when right-back John Flanagan's centre was shouldered wide by Emilsson.

The match ended in controversy when Krisztian Adorjan thought he had equalised in stoppage time, but it was disallowed for off-side. Liverpool were furious with the decision, but in the end, one goal proved enough for the southerners, who will now face Chelsea in the quarter-finals.