CLAUDIO Ranieriâ€™s indomitable charges are proving week after week why they really are title challengers this season, and Danny Drinkwaterâ€™s first ever Premier League goal set their hosts on their way just before half time.
Vardy then latched onto a through ball, rounded Jack Butland and rolled in from a tight angle to end his personal seven-game drought as City opened up a three-point lead over Arsenal, who play Chelsea on Sunday.
Riyad Mahrez then produced an astonishing piece of skill to set up a tap in for Leonardo Ulloa as the Foxes eased to victory.
While Leicesterâ€™s surprise title tilt is gaining momentum, Manchester Unitedâ€™s suffered another blow after they were beaten 1-0 by Southampton at Old Trafford.
It was another wholly uninspiring display by the hosts, with United now going 11 home games in a row without registering in the first half, and Saints debutant Charlie Austin delivered the killer blow with just minutes remaining after coming off the bench.
The Red Devilsâ€™ loss is Tottenhamâ€™s gain after they edged an even London derby 2-1 against Crystal Palace in a game that will be remembered for one of the goals of the season by Dele Alli.
Palace had taken the lead at Selhurst Park after Jan Vertonghen steered Wilfried Zahaâ€™s teasing cross into his own goal before Harry Kane headed Spurs level after the break.
The hosts hit the woodwork twice in succession before Alli channelled his inner Paul Gascogine, flicking the ball over the defender and volleying brilliantly first time, on the turn, into the bottom corner from 20 yards.
Nacer Chadli curled home another impressive finish in injury time to cement Spursâ€™ top-four spot as they also kept pace with the top three.
Elsewhere, Watford held on to beat Newcastle 2-1 at Vicarage Road to clinch a third victory of the season over the Magpies.
After beating their opponents in the FA Cup two weeks ago, the Hornets were at it again as Odion Ighalo scored for the 14th time this season just minutes after half time.
Craig Cathcart bundled in what proved to be the winner just before the hour mark and Watford held on despite Jamal Lascellesâ€™ consolation header.
In the big game at the bottom, Sunderland battled well to earn a 1-1 draw with a lively Bournemouth side after falling behind in the early stages.
Benik Afobe glanced in a stooping header to give the visitors the lead to grab his second top-flight goal since his Â£12m window move from Wolves.
But Patrick van Aanholt levelled for the Black Cats â€“ his second goal in as many games â€“ although the point ensures Sam Allardyceâ€™s side remain in the bottom three.
Below Sunderland remain lowly Aston Villa, who held West Brom to a 0-0 draw at the Hawthorns.
In the early game, Liverpool scored with virtually the last kick to clinch an astonishing 5-4 victory at Norwich. -talkSPORT
Premier League results:
Crystal Palace 1-2 Tottenham
Leicester 3-0 Stoke
Manchester United 0-1 Southampton
Sunderland 1-1 Bournemouth
Watford 2-1 Newcastle
West Brom 0-0 Aston Villa