The Reds started the game slowly but with Xabi Alonso and Javier Mascherano dominating in the middle of the park, Rafael Benitez's side soon began to impose themselves on the game.
The breakthrough was made after 27 minutes when a clever ball from Mascherano sent Steve Finnan clear down the right and with the PSV defence all looking at Peter Crouch, Gerrard was able to steal in and head home Finnan's cross.
The second half was only four minutes old when Liverpool all but wrapped the tie up. Riise intercepted a poor pass and then struck a delightful shot from 30 yards out to put the Reds 2-0 up and in command of this quarter-final.
It got even better for Liverpool after the hour mark when Peter Crouch capped a fine week by heading home another excellent cross for 3-0 and put the Reds within touching distance of the semi-final.
The only sour point of the night was an injury to Fabio Aurelio. The Brazilian, who was impressive again tonight, pulled up after 72 minutes in obvious pain and early reports suggest the defender has ruptured his Achilles.