It was tough on the lads after they'd stood strong against mounting pressure from City once Sergio Aguero had equalised on 65 minutes.
We contained the home team for much of the first hour and took the lead midway through the first half when Steven planted home a header from Tom Huddlestone's free-kick.
But City got over the line again - just like they did in our last visit last season when Mario Ballotelli struck the winner in the 94th minute.
"The lads put in a lot of effort and it's hard to take that result with a late goal," said Steven.
"We were comfortable at half-time. Obviously, I was delighted to score the goal, that got us in front and we were looking steady.
"In the second half we started to drop off with their pressure, they kept going and scored two goals in the end.
"They are a strong side and we can take a lot of pride in that performance, especially in the first half. We'll try to bounce back in the North London derby next week."
Steven has now joined up with full England squad for Wednesday's friendly in Sweden.
"It's my second call-up (to the senior squad) and I'm delighted to be part of it, training with the squad and hopefully doing well," he added. "It would be fantastic to win my first cap."
Edin Dzeko struck two minutes from time to secure a 2-1 win for the champions at the Etihad Stadium.