Hughton and his team travel to Vicarage Road having defeated League Two’s Bury 6-3 in the previous round at Carrow Road, and the City boss is relishing the prospect of another entertaining game.
"If it's as exciting as our last game then it's another one the fans will enjoy I'm sure," he said.
"It's an exciting tie and one we'll really look forward to, but it's up to us to prepare in the right way to get the right result.
"Of course, you always look for a home draw but we'll look forward to going to Vicarage Road for a good, competitive cup game."
Norwich head into the clash off the back of a disappointing run in the Premier League, having won just once so far this season. They fell to a 1-0 defeat to Aston Villa on Saturday to extend their poor streak - a game in which they lost defender Sebastien Bassong to injury, making him a doubt for Tuesday's clash.
However, they will still feel that the League Cup is a competition that they have a realistic chance of winning.
Norwich have taken part in four finals to date, with triumphs in 1962 and 1985 sandwiching defeats in 1973 and 1975.
By contrast, Watford have never made it to a League Cup final, their best effort ending in semi-final defeat to first Nottingham Forest in 1979, whilst they also reached the same stage eight years ago, only to be beaten 2-0 on aggregate by Liverpool.
Gianfranco Zola’s side, who lost out in the Championship play-off final to Crystal Palace in May, could see midfielder Josh McEachran play a part after the England Under-21 international completed a loan move from Chelsea on Friday.
Zola’s side have enjoyed a comfortable passage into the third round – their best showing in the competition for four years – as a 3-1 away success over League Two’s Bristol Rovers was followed up by a 2-0 home win over fellow Championship outfit Bournemouth.
