Villa, starting the day in seventh and hunting the fourth Champions League spot, began with invention and energy and Stephen Warnock came within a whisker of stabbing in Carew's dragged shot inside five minutes.
The Norwegian striker did not have to wait much longer for another golden chance and he made no mistake from six yards to bag the opener.
In the stands, England boss Fabio Capello would have been impressed by the contribution of midfielder Milner, who burst through the middle to set up Young on the left and his low cross was easily slotted home by the unmarked Carew.
Despite being the lowest scorers in the Premier League, Wolves did not crumble as one might have thought and they hit back only seven minutes later.
A floated Jones free-kick dropped to Zubar three yards out and after his mis-timed shot bizarrely went backwards, the ball fell to defender Craddock who crashed home his fifth of the season.
Villa's fighting spirit delights O'Neill
Worse was to come for Villa's increasingly animated manager Martin O'Neill as he witnessed his highly regarded defence breached for the second time in 15 minutes.
Jones was the provider again and after a mazy run, the midfielder fed the ball to Matthew Jarvis on the left and his cross was poked into his own net by the unlucky Milner.
Wolves fought desperately as Villa piled forward searching for an equaliser before the interval and Stewart Downing wasted a golden opportunity when he nodded down and over from Young's cross.
After ending a three-match losing streak last week with a win at Burnley, the visitors looked comfortable in thwarting the Villa attack, thanks also to manager Mick McCarthy shoring up his defence with George Elokobi in for Adiene Guedioura at the start of the second half.
The long balls continued to pepper the Wolves backline but keeper Marcus Hahnemann stood firm as Heskey and Carew both missed headed chances.
O'Neill continued to jump, scratch his head and bark orders from the touchline and he was nearly rewarded as the lively Young struck another dangerous cross for the towering Heskey to nod the ball off the backs of the defenders into the arms of Hahnemann.
Defensive error frustrates Mcarthy
With eight minutes left on the clock, the Wolves' hearts were finally broken when Carew narrowly avoided the offside flag to stab in the equaliser.
Young, for once, was not involved as Brad Friedel's monumental kick bounced through to Heskey and substitute Sidwell was lurking on the edge of the box to feed the ball through to Carew to restore parity again.
It was slightly harsh on a very hard-working Wolves, who might have nicked it at the end when a sloppy Warnock back-pass almost led to a winner from Kevin Doyle.
Wolves boss Mick McCarthy: "My heart rate is still pounding but I'm pleased - but also disappointed," he said after a 2-2 draw at Villa Park.
"One we settled down we gave an excellent account of ourselves. I thought we were terrific.
"I'm disappointed with the goals but there are more positives. It feels like we've had a couple of points snatched away but it was our own downfall."
Aston Villa manager Martin O'Neill: "I've got nothing but admiration for the players. They were not the best goals in the world, but they fought when we had to throw everything at it.
"I couldn't have any more respect and regard for the players."
"On chasing a Champions League qualifying fourth spot, O'Neill added: "The race is well and truly on. We are not out of it."
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