Kavanagh and Earnshaw were on target in a comfortable win
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Goals from Rob Earnshaw, Tony Vidmar and captain Graham Kavanagh saw the Bluebirds to an emphatic home win.
Watford made it difficult for the home side in the first half until a crucial 31st-minute slip from defender Neil Cox let in Earnshaw who rounded keeper Lenny Pidgeley and slotted in his 15th goal of the season.
It was a slow start to the second period, but a 75th-minute Kavanagh corner caused chaos in the visitors' box and ex-Rangers defender Vidmar was on hand to drill the ball into the corner.
The night was sealed for the jubilant home fans with the best move of the night, John Robinson and Earnshaw combining well to create the opening for Kavanagh to strike a beautiful goal from the edge of the area.
Scott Fitzgerald went closest for Watford with a header over the bar that had keeper Neil Alexander
beaten, while on-loan Chelsea youngster Pidgeley made a string of impressive saves.
Before the game Cardiff coach Lennie Lawrence had suggested that his side needed to win if they were to have an impact on Division One this season, and the victory moves the Bluebirds up to 11th in the table.
Cardiff: Alexander, Croft, Vidmar, Gabbidon, Barker, Langley, Kavanagh, Bonner, Robinson, Earnshaw, Gordon. Subs: Prior, Collins, Gray, Fleetwood, Margetson.
Watford: Pidgeley, Kelly, Cox, Gayle, Brown, Vernazza, Ardley, Hand, Devlin, Webber, Fitzgerald. Subs: Chamberlain, Dyche, Dyer, Cook, Smith.
Referee: Eddie Evans (Gtr Manchester).