Porya Ahmadi produced a late contender for goal of the season as United fought hard to hold a star studied Liverpool outfit in an entertaining game at Shirecliffe, in front of the onlooking Kevin Blackwell.
Ahmadi fired home a thumping volley from 35 yards early in the second-half, but Tom Ince restored parity for the young Reds to ensure the game ended all square, with Liverpool including teenage sensation Raheem Sterling and several other talented youngsters from across Europe.
The Blades adopted an attacking 4-3-3 formation and were quickly on the front foot. After some intricate build-up play Murray fired just over after five minutes.
United weren't allowing Liverpool time to settle on the ball, with Slew and Gregory combining to tee up Ahmadi who saw his shot well saved by Oldfield. At the other end Billard had to be at his best to deny Ngoo following a swift counter before the interval.
The home side started the second-half with a flurry of corners and after one hadn't been cleared properly AHMADI volleyed home a wonderful goal from all of 35 yards to spark wild celebrations on the touchline.
Unfortunately, the lead didn't last too long, Liverpool seized possession in midfield and after a string of passes, INCE applied the finishing touch past Billard.
Terry Kennedy nearly capped an eye-catching performance by heading home the winner, before Billard kept the scores level at the other end in the final minute with a tremendous reflex save.
Coach Kevin Fogg heaped praise on his youngsters following the game and was particularly pleased with their desire and application:
"It was a tremendous performance against on of the most prestigious Academies in Europe and that is a credit to everyone connected to the club.
"The first-year lads were a credit to Sheffield United and that will help their development, whilst the second-year scholars demonstrated excellent maturity, captained by Connor Brown."
Blades: Billard, Brown, Pomares, Maguire, Darlow, Kennedy, Gregory, Murray, Ahmadi (Lammy 83), Slew (Pennycooke-Morgan 38), Wilkinson.
Unused: O'Kane, Andrew.