City showed their tremendous strength in depth after Wolves, who also made nine changes, earned a shock lead through Nenad Milijas.
Three goals in four minutes before half-time from Adam Johnson, Samir Nasri and Edin Dzeko effectively killed off the tie.
Then Dorus De Vries (own goal) and Dzeko completed City's nap hand before Jamie O'Hara's consolation effort.
It means City have now scored 45 goals in 15 games this season as they produced the same sort of clinical finishing evident in the 6-1 win over Manchester United at the weekend.
Wolves showed plenty of spirit but the gulf in class was massive and the will not relish having to face City again at the Etihad Stadium on Saturday.
Stefan Savic became the first player to be booked after seven minutes for body-checking Stephen Hunt after a powerful run to the edge of the City box.
Wolves started confidently and David Edwards headed just over from Hunt's first time centre.
The home supporters appealed in vain for a penalty for handball against Aleksandar Kolarov when replays indicated the ball appeared to strike his arm.
But after 19 minutes Milijas, who scored in both league games with City last season, put Wolves in front.
Sam Vokes made good ground down the left before centring and Milijas was able to turn and fire a left-footed shot into the roof of the net.
Craddock was booked a minute later for a late challenge on Dzeko.
City tried to respond to their setback and Dzeko threaded the ball through to Abdul Razak.
But George Elokobi made a superb tackle as the Ivory Coast player prepared to shoot.
After 36 minutes a clinical finish from Johnson put City on level terms.
Dzeko teed up the England winger on the edge of the box and his left-footed 20-yard drive flew past Dorus De Vries into the corner of the net.
Johnson then turned provider for Nasri two minutes later. His superb pass picked out the former Arsenal player and he arrowed a low shot into the corner of the net.
City were now rampant and after 40 minutes Dzeko made it 3-1. De Vries made a fine save to block Scapuzzi's close range effort from a Nasri centre but Dzeko converted the rebound.
Hunt had a great chance to reduce the arrears after 47 minutes when he got on the end of Elokobi's ball back into the box - but failed to make a clean contact on his shot.
City were soon back on the offensive and an own goal from De Vries made it 4-1 after 49 minutes.
Kolarov found himself in acres of space on the left before crossing into the path of Nasri. The Frenchman's initial shot was blocked by De Vries but then the follow-up effort from Scapuzzi rebounded off him over the line.
City looked like scoring every time they ventured forward and De Vries made a point-blank save to deny Dzeko.
Hunt was booked for a foul on Nigel De Jong before Dzeko struck again after 63 minutes with a simple tap-in.
Wolves pulled one back 60 seconds later via the first touch of substitute O'Hara, who turned home a Ward centre.
Dzeko had the chance to complete his hat-trick but his shot was blocked by Craddock.
But Wolves showed plenty of spirit and O'Hara was only just too high with a 20-yard drive.
Then Pantilimon saved Ward's drive at the second attempt and beat away an O'Hara piledriver.