Rodgers was happy with Leicester's display despite the loss.
Andre Gray scored an injury-time victor for the Hornets after Jamie Vardy had cancelled out Troy Deeney's early opener. We started to get into really good areas and the goal at the end is a case of managing the game.
Gerard Deulofeu's whipped free-kick allowed Deeney to steal in front of Wes Morgan and flick a close-range header past Schmeichel, although he may have been marginally offside.
The game reverted to its first-half state as Leicester enjoyed plenty of possession but still did not do much with it and it looked hard to see how they were going to get back into the game. "There were a lot of good signs".
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A poor clearance found its way to Deeney, who hooked the ball on to Gray to run on to and fire through Schmeichel's legs.
Watford manager Javi Gracia, meanwhile, praised Gray for his match-winning impact from the bench.
"Everybody knows how important he is for us because of his professionalism, personality, ambition and character on and off the pitch", Gracia told Sky Sports.
The Gers have had well noted financial problems in recent years but if we had access to TV money comparable to what is earned in England then there is no doubt we would be one of the biggest and successful clubs in Britain, if not Europe and the World.
His abrupt, mid-season exit from Celtic means he has time to work with his players on the training ground, so they can hit the ground running next season.