A brave second-half rearguard action after a hugely controversial red card for Frank Lampard was not enough as Torres found the net twice in the final minutes.
The Chelsea vice-captain had been dismissed in the 59th minute for a foul on Alonso when he looked to have won the ball, the decision by Mike Riley altering what had previously been a balanced game of very few chances for either side.
Following the sending off and defending the Kop End, Chelsea threw everything we had in the way of Liverpool's advances until finally outdone by an 88th minute header and then a follow-up goal inside stoppage time.
The result means the Blues have fallen short against a top of the table side once more, although the debate over the causes this time is bound the rage on.
Luiz Felipe Scolari had been able to choose an unchanged team and bench, a rare luxury this season. Alex continued as Terry's partner in the absence of hamstring victim Ricardo Carvalho and Anelka was again preferred to Drogba in attack.
Belletti's recent illness once more prevented his involvement but there were places for youngsters Michael Mancienne and Miroslav Stoch on the bench.
Liverpool's rotational changes were the expected ones. Reira and Kuyt were brought back to operate as the wide attacking players with Gerrard in the middle and Torres up front. Alonso replaced Lucas as Mascherano's colleague at the base of midfield. 
The game began with a light flurry of snow and a succession of Liverpool fouls, the third a painful one on Bosingwa by Reira, earning the Spaniard some words from Riley.
With the fourth foul, Gerrard managed to kick Terry in the head.
Kalou briefly threatened to dribble right through the heart of the Liverpool defence in the ninth minute, but was dispossessed by last-man back Skrtel.
Two minutes later, Alonso was the first to threaten for Liverpool, his well-struck 20-yard kick tipped over by an alert Cech. Then Terry got away with a loose clearance that hit the shadowing Kuyt.
The first 15 minutes had seen a pretty even contest, Liverpool's one shot on-target and one corner the main indicators separating the two sides' performances. But Scolari will have been reasonably happy with how his side had settled.
Cech was asked to deal with another speculative long-range drive on 18 minutes, this time allowing Mascherano's shot to escape his grasp but no red shirts were even in the penalty area.
The Argentine midfield was involved in the next action too, booked for showing his studs to Mikel as he contested a 50-50 ball.
Ashley Cole followed into the book three minutes later, a harsh decision for contact between his arm and Kuyt.
Neither Anelka nor Lampard could make anything a viciously whipped-in cross from the right by Ballack before a good Liverpool spell around the half-hour mark, Cech needing to hurriedly stretch to clear in taking two touches to deal with Bosingwa's underhit ball back. Then Alex did well in throwing himself in the way of a Torres shot.
At the other end, Terry met Ballack's 32nd minute corner but his header looped harmlessly over.
On 41 minutes there was a genuine escape when Cech was only able to push out Reira's angled low drive, the ball bouncing back off Cole's foot, thankfully the safe side of the post. The Blues by now were playing deep in our own half.
Liverpool almost broke through in stoppage time at the end of the first half but Gerrard and Torres's exchange of passes went astray. That apart, Chelsea would have entered the dressing room relatively happy with the manner in which we had contained the red threat, but a little concerned over the lack of penetration and threat to Reina's goal.
Within 40 seconds of the restart, Alonso went into the book for a nasty-looking, studs-showing slide through on Kalou in the centre circle. Happily, the Chelsea man was able to continue after treatment.
Mikel was booked seven minutes later for taking Arbeloa down from behind. The only moment of note between the cards was when Alex stooped and missed a header at a corner but Chelsea survived, as we later did when Cole blocked a thunderous Torres strike.
On 55 minutes Terry's committed challenge on Kuyt in the area was judged well-timed by the referee before Gerrard's slide into Kalou was bad enough for a Riley lecture.
The decisions of the ref were infuriating the home crowd, ironic when the events of the 59th minute are considered.
As the ball fell between Lampard and his midfield rival Alonso, the Chelsea man stretched and clearly made contact with it before momentum took him into the player. It wasn't two-footed, it wasn't especially high. Alonso was a good yard from even being in possession.
Astonishingly, a red card was produced. Lamps couldn't believe it. His team mates were incredulous.
Past the hour mark, Chelsea had not yet worked Reina in the Liverpool goal and on occasions had looked outnumbered in midfield by the home side's five. Now down to 10 men, we had a huge task ahead.
On 67 minutes, Alonso shot from the edge of the area and Alex flung himself in the path. The ball ricocheted up and hit the bar. Phew!
Scolari made two substitutions a minute later, Deco for peripheral Malouda and Drogba for Anelka.
Gerrard was booked for a blatant dive before either touched the ball. And the Kop had the nerve to sing a song criticising the ref!
Mikel diverted a Torres shot wide as the game increasingly became a siege of the Chelsea goal.
Chelsea briefly rallied and on 74 minutes, had our first shot-on target, Reina catching Kalou's angled effort after a Deco pass.
Four minutes later at the other end, Cech dived full length to tip round a curler from substitute Benayoun, the Israeli following that soon after with volley that just cleared the bar.
In between these moments was plenty of spirited Chelsea defending and on 84 minutes, Scolari decided to change our attacking threat by replacing Kalou with Stoch. 
Sadly, the Blues resistance finally broke on 88 minutes, the ball played wide to Aurelio whose cross from the left was met by Torres ahead of Alex, the header beating Cech at the near post.
Cech tipped over a Gerrard shot over to keep the score down as the game entered stoppage time, however the keeper was powerless to stop Torres adding second when the ball fell his way as Cole tackled Benayoun, the left-back's loose control having given away possession.
Before the end there was an unneccesary boot-up challenge by Bosingwa on Benayoun by the corner flag that might bring further trouble but by then, the result-altering incidents had long passed.
Chelsea (4-3-3): Cech; Bosingwa, Alex, Terry, A Cole; Ballack, Mikel, Lampard; Kalou (Stoch 84), Anelka (Drogba 69), Malouda (Deco 69).
Sent-off Lampard 59.
Booked A Cole 21, Mikel 52, Terry 61.
Liverpool (4-2-3-1): Reina; Arbeloa, Carragher, Skrtel, Aurelio; Mascherano (Babel 82), Alonso; Kuyt, Gerrard (c), Riera (Benayoun 73); Torres (Ngog 94).
Scorer Torres 88, 90+4.
Booked Mascherano 19, Alonso 45, Gerrard 69, Arbeloa 90.






















