The Foxes showed all the industry and determination which spurred them on to in Premier League 2 five days previously to come back from behind following a Kévin Gomis opener in the third minute at the Impact Arena.
City, who face Derby County in just over a weeks' time, raced out of the blocks at lightning speed and almost took the lead inside the opening 60 seconds when Layton Ndukwu skipped inside two Forest defenders and rattled the base of the near post from the periphery of the 18-yard box.
But it proved to be a false dawn for Steve Beaglehole’s men, at least in the early exchanges, with Gomis benefitting from good wing-play by right-back Choz Charlesworth down the channel to convert from close-range past visiting goalkeeper Daniel Iversen.
The guests continued to pose a threat going forward, however, having gone behind and could have cancelled the deficit almost immediately when Ndukwu, often the architect of everything good City had to offer, cut in from the right and arrowed it inches wide of the Forest net.
Kairo Mitchell, a 27th minute substitute for central midfielder Matt Miles, then headed over from just six yards out before then seeing the ball deflect unfortunately off his back and into 'keeper Jordan Wright’s grasp from Admiral Muskwe’s fierce drilled effort.
A tentative start to the second half produced few chances but City were handed the perfect opportunity to draw themselves level with just 18 minutes remaining. But neither Mitchell nor Pascanu, two of the visitors’ key men on the night, could apply a finish to Ndukwu’s searching cross from the byline on the left channel.
Beaglehole’s side were cranking up the pressure as the clock ticked and, at the very last, they got their due rewards when Ndukwu floated in a brilliant free-kick for Pascanu to nod it beyond Wright at the back post and restore parity three minutes from time.
Who impressed?
With City searching for an elusive goal in the second period, forward Kairo Mitchell, a first-half substitute, gave them the outlet they were looking for after replacing Matt Miles in the 27th minute in Nottinghamshire.
Forest defended resolutely and contained their visitors admirably for much of the clash but, if the Foxes were to push forward for a leveller, it would often be Mitchell at the centre of things in and around the 18-yard box.
Under-23s management pair Steve Beaglehole and assistant Ben Petty have often praised the young City forward for his work-rate - and he would have done his chances of returning to the starting line-up little harm with this display.
Where do we stand?
City already knew ahead of their trip across the East Midlands that qualification for the next round of the Premier League Cup was out of the question following the 2-0 reverse to a strong Brighton and Hove Albion side earlier this month.
Forest, too, missed out on the chance to reach the last-16. Focus now returns fully to Premier League 2 duties in the coming weeks with another local derby against Derby County on Monday 6 March. At the end of the evening, City were confirmed to have finished in fourth place in Group E with three points to their name.
FOREST: Wright, Charlsworth, Iacovitti, Edser (c), Nielson, Perquis, Smith, Crookes, Gomis, Otim, Wright (En Neyah 70).
SUBS NOT USED: Taylor, Marques, Smith, Worrall.
GOAL: Gomis 3.
CITY: Iversen, Johnson, Moore (c), Knight (Wood 68), Pascanu, Ndukwu, Miles (Mitchell 27), Kaba Sherif (Dewsbury-Hall 53), Gordon (t), Watts, Muskwe.
SUBS NOT USED: Debayo, Bramley.
GOAL: Pascanu 87.
REFEREE: Anthony Blackhouse.
ATTENDANCE: 134.