Vaughan broke into the Everton team as a youngster and at the time became the Premier League's youngest goalscorer at 16 years and 270 days. His move to City came about on 11 March 2010 when he joined on an initial one-month loan deal. Having already gone out on-loan to Derby County earlier in the season, Everton were keen to recoup some of his wages and allowed him to move to the Walkers Stadium.
His deal came with an option to extend the loan until the end of the season and so they did, although Vaughan only scored once, coming on as a substitute against Watford, from eight appearances in the blue of Leicester. He went on to have a loan stint at Crystal Palace the following season before signing permanently for Norwich City at the start of the 2011-12 campaign.