"I think we've treated the competition with respect but the other teams that have are few and far between," added the veteran Scot.
"We have treated it very seriously. We've used 20-odd players to get there so every member of the squad bar a couple has made a contribution.
"We are grateful to all of them, to the owners and supporters and everyone who has stood by us."
The Reds go into the match on the back of a 6-1 win over Brighton in the FA Cup, which has set up a quarter-final clash with Stoke City at Anfield.
"We have moved on from where we were last year, progressing in the FA Cup and the final of this cup and are four points behind fourth in seventh place - this time last year we were nowhere near that," added Dalglish.
"There is progress being made. For the players it is an indication of how well they have done so everyone is looking forward to it.
"We have a chance so we will do as well as we possibly can and we will try to progress the club and move forward."
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