Skipper Steven Gerrard put the gloss on a hugely impressive display with a thunderbolt at the death.
Rafa Benitez made just two changes from the side which brushed aside Bolton at the weekend with John Arne Riise and Alvaro Arbeloa replacing Sami Hyypia and Fabio Aurelio at the back.
And his team sprang out of the blocks with pace and purpose as Torres tested keeper Robert Green with a header that just looped over.
Liverpool and Torres looked like they meant business and, with barely seven minutes on the clock, they took the lead through the brilliant Spaniard.
Dirk Kuyt fired in a low cross and the Reds' top scorer nipped in ahead of his marker to flash a shot past Green before the Hammers keeper even had time to move.
Liverpool were buzzing, but a lapse of concentration let in the Hammers minutes later when Luis Boa Morte's shot was deflected over the bar by Xabi Alonso after he had side-stepped Pepe Reina.
It seemed to put Liverpool off their early stride and the Londoners enjoyed a fair share of possession.
But the home side still looked dangerous on the break and the exciting Ryan Babel blasted a right-foot shot wide after cleverly cutting in from the wing.
Then Torres again headed over from Riise's 28th minute corner before Green got down well to save superbly from Gerrard ten minutes later.
The Reds started the second half on the front foot with Gerrard revelling in a free role and Torres and Babel looking menacing in attack.
And the Dutchman nearly added a second in the best move of the game only to fire a low shot straight at Green after an exquisite one-two with Gerrard.
It was only a matter of time before the rampant Reds doubled their lead and Torres pounced to strike the killer goal on the hour, the prolific Spaniard burying a header in to the top corner of the net from Kuyt's precise cross.
The hit-man almost completed his hat-trick six minutes later when he headed a pin-point Gerrard cross onto the post with the hapless Green beaten again.
But the Kop's new hero wasn't to be denied again and, with 80 minutes on the clock, he tricked his way through the West Ham defence before slotting the ball expertly past Green and into the bottom corner of the net.
The Kop was being treated to a master-class but it wasn't finished there. Two minutes later the outstanding Gerrard skipped his way through the visitors defence before unleashing an unstoppable 20-yarder that flew into the top corner.