It was double celebrations for the two defenders.
It was Quaye's first start since breaking his leg against his old club West Ham back in October and also his first goal in Canary colours.
For Halliday the goal ended an almost perfect week after it was announced he is one of four Academy youngsters to be offered professional contracts by the club.
With a strong wind blowing down the pitch it was the visitors who took advantage of the conditions in the first half, although it was Chris Martin who had the first attempt at goal firing over the bar.
Chris Martin in full flight against MK Dons
Alvin Quaye, scorer of City's first goal
City had to defend in numbers and found themselves looking to hit the visitors on the break with one such move seeing Bally Smart having his shot blocked.
With 33 minutes on the clock The Dons opened the scoring when Sam Baldock let fly from the edge of the box and doubtless City keeper Joe Lewis will have felt he should have done better as he failed to hold onto the ball.
With the wind advantage City came more into the game after the break and Lee Howlett tried his luck with a dipping shot from fully 40 yards with Dons keeper Robert Webb doing well to scramble back to make a finger tip save.
Chris Martin also tried his luck from distance but his effort was wide of the target.
City's joy was short lived however as just seven minutes later the visitors restored their lead when England fired in a left-foot volley.
City were not to be denied however as with just five minutes of normal time remaining Gusterson again turned provider, this time sending a corner to the far post where it was met on the volley by Halliday who smashed the ball into the roof of the net.
City Line-Up: Lewis, Cave-Brown, Gusterson, Quaye, Halliday, Howlett, Eames [Muddel 75], Bexfield, El Ouargui, Martin, Smart.
Subs Not Used: Fisk, Arnold, Lathrope, Kelly.
Top Canary: Alvin Quaye.
Andrew Cave-brown in the thick of the action
