Admiral Muskwe pounced in the 35th minute to level the scores following an early opener from Spencer Keller for the hosts - which was enough to keep the Foxes in second place in Group D.
There were four changes to City’s line-up following Wednesday’s 1-1 draw with Exeter City as Viktor Johansson, Lamine Kaba Sherif, Luke Thomas and Muskwe came in.
Leicester came out the blocks quickly and, after Muskwe’s long-range effort was blocked behind for a corner, their first real opening came in the fifth minute.
Kiernan Dewsbury-Hall’s corner was headed back across goal by skipper Darnell Johnson, but Alex Pascanu was only able to nod it straight at home goalkeeper Jon McCracken.
However, the Canaries took the lead on 10 minutes as Atli Barkarson played in Joshua Coley who, in turn, slid it into Keller on the edge of the 18-yard box to apply a tidy finish to an excellent move.
With 25 minutes to go in the first half, there were unsuccessful calls for a penalty after an apparent handball in the Norwich box, before Muskwe forced Ciaren Jones into a goal-line clearance.
The pressure continued and Callum Wright ran at the hosts’ defence before locating Thomas, but the young midfielder, promoted from the Under-18s this week, sent it just over the crossbar.
City’s reward came in the 35th minute. Thomas made ground on the left flank and crossed for Tyrese Shade, who was unlucky not to find the net when McCracken saved his low effort.
It didn’t matter, though, as Muskwe ghosted into the area undetected to level the scores with a powerful finish.
The second half was a decidedly quieter affair. On the hour-mark, Wright tried to take matters into his own hands by running at Norwich and shooting, but he could only find the side netting.
Senior Professional Development Phase Coach Steve Beaglehole elected to bring on Ryan Loft and Edward Elewa-Ikpakwu in the second period, injecting power and pace into his side.
With three minutes of normal time remaining, Wright again tried his luck from distance, stinging McCracken's fingertips, but the home side's 'keeper was able to seize upon the loose ball.
However, both sides will have been frustrated with the lack of true scoring opportunities created in the latter stages and were forced to settle for a share of the spoils.
Who impressed?
Stepping up into the Under-23s starting line-up, Under-18s captain Luke Thomas was a positive and industrious figure for the Club’s Development Squad in Norfolk.
Often on the wing, although occasionally coming into the middle, the England Under-18s international was a threat for the Foxes and played a key role in Admiral Muskwe’s equaliser.
Where does it leave us?
Second-placed Leicester are now seven points adrift of Group D leaders Nottingham Forest, who defeated Exeter City 5-0 on Monday evening.
They do, however, hold a three-point cushion over Exeter and Norwich with just two games to play.
Coming up…
City’s youngsters have a rearranged Premier League International Cup tie against Feyenoord next on the agenda - at Holmes Park next Tuesday (7pm GMT kick-off).
The details…
City: Johansson, Johnson (c) (Elewa-Ikpakwu 84’), Ughelumba (Loft 70’), Kaba Sherif, Knight, Pascanu, Wright, Dewsbury-Hall, Muskwe, Shade, Thomas
Subs not used: Bramley, Pennant, Tee
Goal: Muskwe 35
Images: NCFC