The 21-year-old Balotelli came off the bench to score after 68 minutes following good work by Sergio Aguero who created the move for the Italian's first league goal of the season.

Balotelli shot from the edge of the box, took a deflection off defender Phil Jagielka and evaded Tim Howard in the Everton goal.

Milner scored his first goal of the season after 88 minutes when he raced on to a through ball from David Silva and poked the ball home.

Two minutes after City went ahead, the home side, who dominated for most of the game, almost went 2-0 ahead but Silva's left-foot shot bounced back off a post. Silva also had a goal disallowed for offside five minutes from time.

Fernando Torres, who finally appeared to be finding the form that prompted Chelsea to sign him for a British record of 50 million pounds ($77 million) in January, scored his second goal of the season for Chelsea but was sent off 10 minutes later against Swansea City on Saturday.

Torres, who before last weekend had scored just once for Chelsea since his record move from Liverpool, finally got on the scoresheet this season with a well-taken goal at Manchester United last week, and scored again after 29 minutes against Swansea.

It was an excellent strike following a pass from Juan Mata with Torres chesting down the ball before firing home to put Chelsea 1-0 ahead in the Premier League game.

Ten minutes later the Spanish striker flew in at Swansea's Mark Gower with both feet off the ground and referee Mike Dean showed him an immediate red card.

It was Torres's first dismissal since he moved to English football in 2007 but Chelsea's second red card in two matches following Alex's sending-off against Fulham in the League Cup on Wednesday.

Arsenal, struggling at the wrong end of the table after their worst start for 58 years, moved up five places to 12th with a 3-0 win over Bolton Wanderers.

Robin van Persie scored his 99th and 100th goals for Arsenal and Alex Song grabbed a late third to leave Bolton bottom.

Bolton have now lost five successive league matches following their 4-0 opening day win at Queens Park Rangers and their miserable afternoon was compounded with a sending off for David Wheater.

In the other afternoon match, West Bromwich Albion drew 0-0 at home with Fulham.

Liverpool are fifth after beating Wolverhampton Wanderers 2-1 at Anfield where a Roger Johnson own goal and a second from Luis Suarez gave the hosts the points.

Tottenham Hotspur continued their revival with their third straight League victory, winning 2-1 at Wigan Athletic to climb to sixth with first half goals from Rafael van der Vaart and Gareth Bale.

Wigan finished with 10 following the second half red card for Steven Gohouri.

Newcastle United maintained their unbeaten start to the season. 

They stayed fourth with Senegal international Demba Ba scoring a hat-trick in their 3-1 home win over Blackburn Rovers.

Rovers finished with 10 men after Martin Olsson was sent off.