The injured Ghana international watched as Ricardo blasted in a winner from the edge of the penalty area in the 81st minute after Leroy Sane's weak header to leave Manchester City seven points behind leaders Liverpool and take them below Tottenham as well.
The visitors had taken a 14th-minute lead when they took advantage of poor defending from the home side as Sergio Aguero released Bernardo Silva and he calmly slotted past Kasper Schmeichel.
But their lead only lasted five minutes as Marc Albrighton headed in from Jamie Vardy's cross, before Ricardo's stunning winner for a Leicester side who had also won 1-0 at Chelsea on Saturday.
The away side ended the game with 10 men as Fabian Delph was shown a red card when he slid in on Ricardo and caught him on the knee.
Manchester City only lost twice in all of 2017-18 as they became the champions, but this loss was their second in five days after a shock 3-2 home defeat by Crystal Palace on Saturday.
It has been a miserable festive period so far for Guardiola's side, who have now twice surprisingly been beaten after scoring the game's opening goal.
City are aiming to win the Premier League for the fourth time in eight seasons and have 44 points, with Liverpool, who they play at home on 3 January, on 51 points after their 4-0 home win over Newcastle.
Amartey is set to return to action next year after suffering the injury that rocked his impressive showing for Leicester City. He recently extended his contract with the club.
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