Simon Eastwood proved spot-on for City with two saves in the penalty shoot-out as they clinched a breathless Johnstone's Paint Trophy clash.
Eastwood denied Delroy Facey and fellow keeper Kasper Schmeichel to prompt a pitch invasion at the end of a thrilling night.
It was the tensest finish possible to a game full of drama, which had seen Graeme Lee sent off on his old ground and City twice hit back through Michael Boulding and Chris Brandon's 90th-minute header.
But City held their nerve to make it ten matches unbeaten - and exact revenge for the league thrashing on the opening day of the season.
It was a significant night for Matt Clarke, seeing his first senior action since being hauled off before the hour against the same opponents on opening day.
Leon Osborne also got a rare start up front - his last one was in November against Rotherham.
Lee, who scored a trophy-winning goal with Doncaster, was back at Valley Parade in Notts County colours after recovering from a torn groin muscle. There were predictable boos when he got possession.
The rain was falling heavily and the surface water was evident as the ball splashed off the ground.
Eastwood was instantly called into action to touch over Karl Hawley's drive but the keeper was caught out after just 11 minutes.
Schmeichel's goal-kick was flicked on by Hawley and winger Craig Westcarr found Eastwood in no man's land, coolly angling home the opening goal.
But there were no shades of the massacre at Meadow Lane.
The crowd were briefly stunned into silence but came back to life when Lee was booked for bundling over Michael Boulding.
City were playing some bright stuff, particularly down their left side, and didn't deserve to be behind. They weren't for long.
Osborne drilled a shot into the side-netting before City levelled with a peach of a goal. Michael Flynn dinked the perfect pass behind the defence and Boulding pounced on it to steer past Schmeichel left-footed.
A second quality finish in successive games - Boulding looks back to his predatory best.
Scott Neilson had barely had a touch but popped up on the left side to take Boulding's pass and force a save at the foot of the post.
Clarke was doing a decent containing job on Hawley and his central partnership with skipper for the night Simon Ramsden was keeping things tight. Clarke tracked back well to deny Delroy Facey as half-time approached.
Boulding tested Schmeichel again before City almost grabbed the lead right on the break. Making the most of the conditions, James O'Brien's free-kick skidded awkwardly right in front of the keeper, who reacted quickly to parry with his chest.
There was a low-key feel to the start of the second half. The rain had come back again with renewed force and passes from both sides were going astray.
Clarke almost played himself into trouble when he tried to dribble out of danger by the corner flag but there was a lack of goal-mouth incident.
Stuart McCall made his first change on the hour. Flynn, possibly still feeling the effects of his recent back injury, made way for Luke Sharry.
The young sub, wearing dazzling yellow boots, got involved straight away, trying his luck from 25 yards and then slipping two tackles with a bright run.
The game - and fans - had woken up again and cranked up a few more notches when Lee was sent packing after sliding through the back of Boulding five yards outside the Notts County box.
Schmeichel had to be at his best to claw away James O'Brien's curling free-kick.
Peter Thorne, injured in the last round, got his long-awaited chance with 17 minutes left. McCall switched to 4-4-2, with Osborne moving to right midfield and Bould-ing and Thorne back in tandem in attack.
Despite being a man down, County launched a fierce late rally and got their reward with five minutes left as Facey turned home Westcarr's cross.
But City hit back once again as Brandon, one of the smallest men on the pitch, headed home James O'Brien's corner in the 90th minute.
In a pulsating finish, Matt Ritchie rattled the bar at one end and Brandon forced a great save from Schmeichel at the other.
The stage was set for penalties. Boulding missed but Thorne, Ramsden and man of the match O'Brien all scored before Eastwood finished the job.
| BRADFORD CITY | NOTTS COUNTY |
| 1 Simon Eastwood | 23 Kasper Schmeichal |
| 2 Simon Ramsden | 4 Mike Edwards |
| 3 Luke O'Brien | 5 Graeme Lee |
| 4 Michael Flynn | 6 John Thompson |
| 6 Matthew Clarke | 8 Ricky Ravenhill |
| 11 Chris Brandon | 10 Neal Bishop |
| 14 Michael Boulding | 15 Karl Hawley |
| 16 Jonathan Bateson | 17 Jamie Clapham |
| 19 James O'Brien | 20 Craig Westcarr |
| 20 Leon Osborne | 22 Delroy Facey |
| 26 Scott Neilson | 24 Danny Jones |
| Substitutes: | Substitutes: |
| 13 Jon McLaughlin | 12 Kevin Pilkington |
| 5 Zesh Rehman | 3 Matt Ritchie for 15 (69) |
| 10 Peter Thorne for 26 (73) | 7 Matthew Hamshaw |
| 21 Luke Sharry for 4 (61) | 18 Stephen Hunt |
| 24 Louis Horne | 19 Luke Rodgers |
| MATCH OFFICIALS: | |
| Referee | A R Hall |
| Assistant Referee | M A Astley |
| Assistant Referee | I Siddall |
| 4th Official | M Heywood |
| GOALSCORERS: | |
| BRADFORD CITY | NOTTS COUNTY |
| M Boulding (21) | Westcarr (11) |
| Brandon (90) | Facey (85) |
| PENALTIES: | |
| BRADFORD CITY | NOTTS COUNTY |
| M Boulding (saved) | Westcarr (scored) |
| Thorne (scored) | Ritchie (scored) |
| Ramsden (scored) | Facey (saved) |
| J O'Brien (scored) | Bishop (missed) |
| Schmeichal (saved) | |
| DISCIPLINARY: | |
| BRADFORD CITY | NOTTS COUNTY |
| Brandon | Lee |
| Bateson | Edwards |
| Lee | |
| Westcarr | |
| . |
