The former striker is predicting a comfortable win for Jurgen Klopp's side.
The two sides meet at Anfield on Wednesday in contrasting form and the situations at the club vastly different.
While Liverpool are flying under Jurgen Klopp, especially after their win over Borussia Dortmund, Roberto Martinez’s side have endured another disappointing campaign.
One consolation is that they are set to take on Manchester United in the FA Cup this weekend, with suggestions the Catalan may play a weakened side as a result.
Nicholas though, says it doesn’t matter what team he puts out, as Liverpool will run out as winners.
“I don't think Roberto Martinez can afford to give Liverpool a free swing at this. Liverpool could turn them over quite badly,” he told Sky Sports.
“Putting all your eggs in the FA Cup basket is dangerous, especially as it's not going to help their confidence against Manchester United if they go into the semi-final on the back of a hiding from their rivals.”
“I think Liverpool will win regardless with the way Jurgen Klopp's men are playing, it could be three or four if Martinez plays a weakened team.”
The problem for Martinez is that the FA Cup is arguably the one thing that could absolve him at Goodison Park.
There is no denying that his side should be much further up the table given the quality in their squad, but a cup win would be warmly welcomed nonetheless.
Whether Everton fans would accept a big loss to fierce rivals Liverpool to secure that though is debatable especially given their poor form against their rivals over the years.