Key points
The dominant Edinburgh side powered eight ahead of their Glasgow rivals at the top of the Scottish top flight to bolster their early-season title credentials and deepen the struggles around the Celtic team.
A superb goal from Kyziridis and a spot-kick from Shankland gave Derek McInnes' side 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 early on to put Hearts ahead at a bouncing their home ground, and it was the youngster's infringement that led to the penalty.
A stylish finish from McGregor of the season had swiftly equalized the first goal, and the Swedish attacker almost put Celtic in front, choosing placement over power and allowing Alexander Schwolow to make a crucial stop.
But the unstoppable Hearts side seized control again to consign the visitors to successive league defeats for the initial occasion since last year.
It also gives the Edinburgh side a significant lead at the summit.
The previous occasion they were so far clear was in the 2005-2006 season under their former manager, 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 last three decades.
The Hearts coach, whose Aberdeen side were second to Celtic on four occasions, has been at pains to play down title talk, as the club seek their maiden league title since 1960.
Rodgers has seen it all before at the club - both flawless and stuttering starts to a season. He's never ended as runner-up.
But on Sunday's evidence, this Edinburgh outfit showed they need to be taken seriously.
The Edinburgh side started with the self-assurance of a side undefeated in the league this season - fans' favourite Kyziridis poked a cross in for Shankland to fire off target.
The Glasgow team didn't aid their cause with some unusual sloppiness in possession and they faltered under their first real examination.
A headed effort from Braga was touched on to a post by Kasper Schmeichel and Shankland's return ball was turned into the net by the hapless defender, in for the absent center-back.
Celtic grew into the contest and started stringing passes together. From a flowing attack, the midfielder released the full-back to set up the captain, who rolled in.
Apart from the Nygren chance, the visitors found it hard to generate chances for striker Kenny or his substitute Yamada amid the absence of stricken attackers Kelechi Iheanacho and Daizen Maeda.
The home team regained their intensity and versatility in attacking from across the final third. Kyziridis, a standout performer of the club's scouting network, fired a low shot past the goalkeeper from the edge of the box.
Immediately after, the defender tripped Braga in the inside right channel and the penalty taker converted. And it could've been an even more handsome win, had substitute Ageu not been stopped by the shot-stopper.
The visitors' performance after the break was somewhat summed up in two incidents involving record signing Arne Engles.
The midfielder's wayward free-kick delivery was in stark contrast to his European display in the continental victory over their Austrian opponents and the Belgium international was then yellow-carded for a professional foul.
Hearts head coach Derek McInnes: "You see how hard the players work, the team spirit. That's not always enough to win games week in, week out.
"Our strength lies in, is good technical ability. You're witnessing it from multiple individuals who have been here before. Recent additions are eager to show that.
"We're in a positive moment at the minute, but it's just one win. It's important for us to maintain this form. We've got loads to do, plenty to improve. After the first two rounds 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 play was recycled as a defensive unit so when they play it, they ought to be caught offside but didn't. We have got to improve with the shot.
"Plenty of matches to play for. It's only the beginning. It's only nine games in. Obviously, being eight points behind is not ideal. The positive is there's so many games to play.
"Our attention must turn on the here and now and look to achieve greater stability and better performance in our play."
The Glasgow club are back at home on midweek against newly-promoted Falkirk (evening kick-off). At the identical hour in the top division, Hearts are at St Mirren.
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