At a glance
The dominant Edinburgh side surged eight ahead of their Glasgow rivals at the top of the Scottish Premiership to strengthen their early championship claims and worsen the struggles around the Celtic team.
A superb goal from Kyziridis and a spot-kick from Shankland gave the Hearts team a 3-1 lead that the title holders could not recover from.
Dane Murray - among three youth players in the Celtic XI - slashed into his own net in the early stages to put Hearts ahead at a energetic their home ground, and it was the youngster's infringement that led to the penalty.
Callum McGregor's classy first goal of the season had swiftly equalized Hearts' opener, and the Swedish attacker almost put Celtic in front, opting for finesse over power and allowing the Hearts keeper to save from close range.
But Derek McInnes' irrepressible Hearts seized control again to hand Celtic to successive league defeats for the initial occasion since last year.
It also gives the Edinburgh side a commanding advantage at the top of the table.
The last time they were so far clear was in 2005-06 under George Burley, when they ended as runners-up - one of just four occasions that a team has failed to win the title after building such an advantage in the past 27 years.
McInnes, whose former team were second to Celtic on multiple times, has been working hard to downplay championship discussions, as Hearts seek their maiden league title since 1960.
Rodgers has experienced this previously at Celtic - both flawless and stuttering starts to a season. He's never ended as runner-up.
But on the weekend's performance, this Hearts team showed they need to be taken seriously.
The Edinburgh side started with the confidence of a side undefeated in the league this season - fans' favourite Kyziridis delivered a ball for the striker to fire off target.
Celtic didn't help themselves with some uncharacteristic carelessness in possession and they buckled under their first real examination.
Claudio Braga's header was tipped onto the woodwork by the Celtic keeper and the follow-up from Shankland was turned into the net by the hapless defender, in for the absent center-back.
Celtic grew into the contest and started building moves. From a flowing attack, the midfielder released the full-back to square for the captain, who slotted home.
Apart from the Nygren chance, Celtic struggled to create much for striker Kenny or his replacement Shin Yamada amid the unavailability of stricken attackers their key strikers.
The home team rediscovered their energy and adaptability in attacking from across the final third. Kyziridis, one of the finds of the club's relationship with shareholder Tony Bloom's Jamestown Analytics, fired a low shot past the goalkeeper from the edge of the box.
Immediately after, the defender tripped Braga in the right side of the box and Shankland converted. And it could've been an even more handsome win, had substitute Ageu not been denied by the shot-stopper.
The visitors' performance after the break was somewhat summed up in two incidents involving big-money recruit Engles.
The set-piece from Engles delivery was in sharp opposition to his midweek exploits in the continental victory over their Austrian opponents and the national team player was then booked for a professional foul.
The Hearts manager: "The effort from the squad is evident, the team spirit. That's not sufficient on its own to win games week in, week out.
"Our strength lies in, is skillful players. You're witnessing it from a lot of players who have been here before. Recent additions are keen to demonstrate their quality.
"We're in a positive moment at the minute, but it's only three points. It's important for us to maintain this form. We've got much work ahead, loads to do. Following the initial fixtures is typically a benchmark of where you are."
Celtic manager Brendan Rodgers: "It's a really poor goal from our perspective. We didn't move when the ball went back as a defensive unit so when they play it, they should have players offside but didn't. We have got to do better with the shot.
"Plenty of matches to play for. It's still so early. It's only nine games in. Clearly, being eight adrift is not ideal. The comfort is there's so many games to play.
"We now have to focus on the here and now and look to achieve greater stability and more quality in our play."
Celtic are back at home on midweek against newly-promoted Falkirk (evening kick-off). At the identical hour in the Scottish Premiership, the Edinburgh outfit are at St Mirren.
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