Second-half strikes from Kevin Doyle and James Harper secured the Royals their first win in five league outings after Steven Gerrard had cancelled out Stephen Hunt's first-half penalty.
Liverpool had two valid penalty claims turned down and saw Gerrard and Peter Crouch hit the woodwork as Reading enjoyed the rub of the green.
But the home side earned their good fortune with a resolute display that deservedly saw them avenge a 4-2 Carling Cup defeat at the same ground earlier this season.
The luck that Reading enjoyed surfaced first as they made a 16th minute breakthrough.
Brynjar Gunnarsson latched on to Bobby Convey's first-time pass and drove past Jamie Carragher into the Liverpool penalty area and the defender reacted too slowly as he clattered the midfielder.
It was a clear foul and, although replays suggested contact was just outside the box, Liverpool could have few complaints that referee Andre Marriner's instant reaction was to agree with his linesman in awarding a penalty.
Hunt calmly sent Jose Reina the wrong way from the spot for his second goal of the season, but Liverpool predictably reacted with menace as their unbeaten league record came under real threat.
They were level on 28 minutes when Torres chested down a long punt forward from Reina and rolled the ball into the path of the previously anonymous Gerrard, who escaped the attentions of Hunt and took one touch to set himself up before stroking past Marcus Hahnemann.
The visitors could have been in front before the break had referee Marriner spotted Ibrahima Sonko's clip on Torres' ankle in the penalty area and they saw more penalty claims waved away early in the second half when the same man got the faintest of touches on the ball as he tangled with Torres.
But the game truly turned Reading's way on the hour after Gerrard was booked for a foul on Hunt and Nicky Shorey's resulting free-kick was flicked home by Doyle.
Doyle thumped a shot on the turn just over and Gerrard's dipping shot smacked against the crossbar before Reading made the game safe midway through the second half.
Doyle found Convey tight on the left wing and his pass sent Harper clear with the midfielder neatly side-stepping Reina before clipping home a neat finish.
With a must-win Champions League game with Marseille to come in midweek followed by a Premier League showdown with Manchester United next weekend, Rafa Benitez effectively threw in the towel as he withdrew Torres, Gerrard and Carragher in the second half.
Crouch hit a low drive against a post in stoppage time, but that was as close as the Reds came to mounting any sort of comeback.