At the halfway stage, Sheffield were level at 6-6 - which was a cue for Liverpool's experienced international Katie Brown to make her mark in the third period with two breakaway goals. Sophie Gilbert made it 9-6 to Liverpool, but Sheffield were not finished.
From 9-6 down, they pulled up to 9-8 in the last before Liverpool - who by now had seen Katie Brown majored out - eased their nerves with a goal 47 seconds from the end by Emily Pyper.
Mariah Walker scored again for Sheffield almost on the final whistle, but Liverpool held out for a 10-9 win.
Earlier, Manchester proved too strong for Championship 1 champions Otter, winning 16-5. Otter fought back to trail 4-2 following a shaky start but after that struggled to beat the excellent Manchester goalie Sophie Jackson. Three players scored four times for Manchester - Mhari Nurthen, Rosie Huck and Lucy Blenkinship.