The Yorkshire club have gained a reputation for claiming Premier League scalps in recent years - knocking out Arsenal and Aston Villa in their 2012-13 run to the League Cup final before beating Chelsea in the fourth round of this season's FA Cup.
While Knott wants City to take confidence from their 4-2 win at Stamford Bridge, the former Sunderland man also warned of reading too much into their previous exploits.
"We know people might get carried away but we're going to work hard as underdogs and put in 100 per cent and see where it takes us," he told Perform.
"We know in the dressing room that we're massive underdogs - they've got international players, multi-million pound players and Premier League players.
"We've got to remember we're the underdogs but it's another Premier League team and we're all looking forward to it - Chelsea was a big day for us and after coming through that I think we deserved this draw.
"It's another Premier League team where we can show what we can do. You've got to take confidence from those sort of games.
"Beating Chelsea at Stamford Bridge - it doesn't happen often. You've got to make it last but we're focused on the game on Sunday, we're all looking forward to it and feeling fit."
Knott will come up against another of his former clubs this weekend, with the former Chelsea academy player spending four years on Wearside.
However, the 22-year-old spent much of his time at Sunderland on loan at various clubs before moving to City, although he does not feel as though he has a point to prove.
"I'm looking forward to the game but I don't think I've got anything to prove - I had four great years at Sunderland and I developed there well as a player," he added before also discussing City's recent league form.
"So, I enjoyed my time and all the staff there were great to me so I don't have anything to prove.
"I felt we should have got the three points on Saturday [in the draw against] Port Vale on Sunday but it didn't go that way, then if we'd have lost to MK Dons it would have been a long, long week.
"But we put in a great performance [in the 2-1 win] and we're all looking forward to Sunday now - it's a big game for the club and it's going to be one of the biggest crowds at Valley Parade so hopefully the fans can get on our side and be our 12th man."
