Lloyd Dyer's close-range effort gave City, who started the day in fourth, a 16th-minute lead, which David Nugent's penalty doubled on the stroke of half-time.
Blackburn undeservedly pulled one back through Jordan Rhodes's 70th-minute spot-kick, but the Foxes followed up Saturday's 2-0 defeat of FA Cup holders Wigan, a result also completed by a Nugent penalty, while Rovers suffered their third loss of the season.
Bolton slipped to the bottom of the table after a 2-2 draw despite avoiding the ignominy of suffering a fifth-straight defeat against an in-form Derby.
Derby, who were aiming for fourth straight away victory at the Reebok Stadium, turned the game on its head through a Johnny Russell double before Chris Eagles levelled proceedings just before half-time.
Bolton dominated for large spells of the second half and while substitute David Ngog wasted their best chance when he put a free header wide, the hosts were earlier grateful for Matt Mills' goal-line clearance from Adam Smith's shot.
Ipswich again showed their powers of recovery to complete their second come-from-behind victory in the space of four days as they saw off Yeovil 2-1.
Despite not registering a win since the opening day of the season, the Glovers threatened to leave Suffolk with a shock victory after Joel Grant's stunning strike just before half-time.
But second-half goals from Daryl Murphy and Aaron Cresswell saw Mick McCarthy's men grind out a hard-fought victory.
Marc Pugh finally broke down stubborn Barnsley resistance as Bournemouth edged the visitors 1-0.
Eddie Howe's men had been second best in a first half which saw Chris O'Grady and then Steve Dawson rattle the same post for a Barnsley side who are yet to take even a point on their travels this season.
But inspired by the introduction of record signing Tokelo Rantie, the home side upped the ante and after Lewis Grabban uncharacteristically missed a simple chance Pugh lashed the ball home with his weaker foot to seal the points.
After Kei Kamara and George Friend had given Boro a two-goal cushion, Davies sent on Matt Derbyshire and Darius Henderson and they both earned 'super-sub' status to score a goal apiece as Forest came back from the dead to deny Tony Mowbray's men an unlikely victory.
Danny Ings struck his sixth and seventh goals of the season as Burnley maintained their unbeaten home record with a 3-0 win over Birmingham.
The 21-year-old continued to help Clarets fans forget about their former prolific striker Charlie Austin - now at QPR - with a pair of neat finishes against Birmingham, the first after just three minutes.
Winger Scott Arfield headed home a second 17 seconds after the break and the in-form Ings made sure of the result with another goal eight minutes later.
Lewis McGugan's penalty three minutes from time fired Watford to a first win in five outings as they defeated Doncaster 2-1 at Vicarage Road.
The Hornets' stand-out performer had given his side the lead in the 13th minute but this was cancelled out by Chris Brown inside two minutes.
Gianfranco Zola's men piled on the pressure in the last half an hour and went close on a number of occasions before James Husband fouled Sean Murray just inside the area and the summer arrival from Nottingham Forest made no mistake from the spot.
James Vaughan continued his blistering start to the season as Huddersfield edged out Charlton 2-1 at the John Smith's stadium.
Vaughan, who joined the Terriers from Norwich in the summer following a successful loan spell last term, netted his ninth goal in as many outings to keep Chris Powell's side waiting for their first points on the road.
The 25-year-old's first-half strike set the home side on their way before defender Joel Lynch fired home a stunning second.
Cameron Stewart netted an equally fine consolation for the visitors.
Quickfire goals from Nicky Bailey and Steve Morison secured Millwall's first win of the season and perhaps kept manager Steve Lomas in his job as they beat Blackpool 3-1.
Bailey struck in the 72nd minute and substitute Morison 90 seconds later as the Lions came from behind to inflict Blackpool's first defeat of the season. Tom Ince initially gave the visitors the lead before Liam Trotter’s equalised from the penalty spot.
- Sports & Recreation
- David Nugent