Stoke have enjoyed a positive start to the season under new boss Hughes after following up an opening day defeat at Liverpool with back-to-back wins over Crystal Palace and West Ham.
Next up is the visit of Hughes' old club on Saturday and the Stoke manager is looking forward to tackling Manuel Pellegrini's side.
"It's a big test, but we are playing well and are encouraged by what we have seen," said Hughes in The Sentinel. "You know at some point you are going to be facing one of the top teams in Europe.
"It will also be a good test of where we feel we are and where we can get to."
Hughes was dismissed by City in December 2009 and was swiftly replaced by Roberto Mancini, but there is no lingering ill-feeling towards the club.
He added: "The longer time has gone on, I think they look back and realise I did a decent job.
"There was a change of ownership, which wasn't easy. Also, the circumstances when I went were different to what they were portrayed to me.
"I don't hold any resentment about that. The fact was I drew too many games and gave them the opportunity to go in a different direction.
"I think they would have done it sooner, but I didn't give them the opportunity because we won our first five games that season."