Defender was sent off just before the hour mark with after a second bookable offence and the experienced substitute scored from the spot to end the visitors' run
The visitors were looking to extend their lead at the top of the table by beating a side still in contention for the title, but two yellow cards in 12 second-half minutes for Gael Clichy made it hard for Roberto Mancini’s side, as Chelsea piled on the pressure before the extra man made the difference.
Inside the first two minutes the visitors opened the scoring after a fine through pass from Sergio Aguero found Balotelli. The Italian quickly got the ball from out of his feet before knocking it around Petr Cech and calmly slotting it into an empty net.
Home midfielder Raul Meireles let fly from 25 yards out moments later as the Blues looked for a quick reply, but his effort sailed wide of Joe Hart’s goal.
Meireles again tried his luck to get his side level, but his shot was deflected over the bar. From the resulting corner, the Blues failed to test Hart and instead the ball went down the other end and Aguero should have put his side two goals in front.
He held off Jose Bosingwa before dancing his way past Ashley Cole and Romeu after a ball over the top from Balotelli, but his left foot shot went the wrong side of the post.
Didier Drogba brought Hart into action as he shifted the ball from one foot to the other before making the England international tip the ball around the post before the Portuguese finally got his reward for his determination.
Daniel Sturridge crossed the ball into the box, and to the delight of the home fans, Meireles finished with a clever side-foot volley.
Sturridge then had a chance to put the hosts in front for the first time in the match after a free-kick from Mata dropped at his feet minutes into the second half, but he shot over.
Clichy collected a second yellow after a clumsy challenge on Ramires just before the hour mark, and Chelsea ultimately made their advantage count.
Joleon Lescott put his arms in the air to block Sturridge’s curling effort, and referee Mark Clattenburg immediately pointed to the spot. Lampard, making his 350th Premier League appearance, made no mistake, thundering his kick straight down the centre.
The home side threatened a third, but will be content with their 2-1 success, which marks the Citizens' first domestic slip of the season.