Milan hit the woodwork twice, but Palermo join Inter on top of the table after an historic 2-0 victory at San Siro, their first ever Serie A win here.

The Rossoneri ended their run of four straight draws in all competitions with a 1-0 Champions League victory away to Anderlecht midweek, but now needed to get back on track in Serie A by facing high-flying Palermo. The Sicilians were also successful in Europe with Thursday's 2-1 win at Eintracht Frankfurt, but suffered a 3-2 home loss to Atalanta last Sunday.

Clarence Seedorf and Pippo Inzaghi had early shots charged down, then a great move with first-touch football from Gennaro Gattuso, Marcos Cafu and a Kaka nutmeg set up Alberto Gilardino, the ex-Parma man cut off by defenders.

Palermo also threatened with David Di Michele's snapshot over the bar and a couple of Mark Bresciano efforts caught by Dida.

Inzaghi could not have gone closer when his angled drive flashed across the face of goal and shaved the far post by inches.

Super Pippo then nodded Andrea Pirlo's pass over with a glancing header, while Marek Jankulovski's tackle halted a rampaging Di Michele counter-attack.

Di Michele was a constant danger and won back the ball in midfield to power forward, his angled drive smashed just wide of the upright.

Pirlo's corner was nodded just wide of the near post by Inzaghi with an Amauri deflection and Cristian Zaccardo sliced a clearance to almost score an own goal, bringing back memories of his World Cup blushes against USA.

Andrea Barzagli flung himself at Inzaghi's shot from a Cafu assist, then as the move continued Gilardino held up the ball for an Inzaghi volley into the ground well gathered by Alberto 'Jimmy' Fontana.

Barzagli was decisive once more to parry Kaka's snapshot, as Milan turned up the pressure towards half-time.

There was a great chance in stoppages, as Kaka skipped past three defenders down the left flank and rolled in for Gilardino, who couldn't get a strong enough touch to direct it towards goal.

Inzaghi wanted a penalty straight after the restart, but he was flagged for a very tight offside position instead.

It was Palermo who took the lead thanks to a defensive howler from Alessandro Nesta. The ex-Lazio man tried to cut out an Aimo Diana through ball, but didn't notice Bresciano right behind him and the Australian stole in front to fire a low drive into the far corner.

It could easily have been 2-0 less than two minutes later, as Fabio Simplicio unleashed a fearsome right-foot strike from 20 metres that cannoned off the upright to Dida's right.

Pirlo's piledriver was deflected wide off Barzagli and Nesta nodded the resulting corner off target, but another dreadful error from Jankulovski gave Palermo another great chance with Diana and the cross was too long.

A Pirlo free kick bounced past everyone to skim the far post undisturbed, then Seedorf sprinted down the by-line to place a low ball across the face of goal where Gilardino and Inzaghi just failed to tap in.

Paolo Maldini replaced Jankulovski at left-back, a role he hasn't played in for a while, leaving Kaladze in central defence. Kaka's brilliant run down the left crossed in for Inzaghi, whose shot flashed over the bar from seven yards.

Milan were incredibly unlucky on 67 minutes! First a spectacular Kaka right-foot strike from a tight angle smashed against the near post, the ball ricocheted out to the edge of the area where Pirlo rattled the other upright! Fontana was static in both occasions, barely able to move from the spot and very thankful to the woodwork.

Gilardino couldn't quite get on the end of Pirlo's chipped pass over the defence as it turned into a siege on the Rosanero goalmouth. Palermo resorted to using themselves as human shields on a trio of shots from Gilardino, Kaka and Maldini in the space of 10 seconds.

Gattuso combined with Kaka inside the area, but his pass in for Inzaghi was cleared at the last moment by a brave Giuseppe Biava. Cristian Brocchi came on for Gattuso in the final 17 minutes.

However, the Sicilians clung on for dear life only to hit Milan on the break and go 2-0 up against the run of play. Bresciano's missile stung Dida's palms and Amauri knocked in the loose ball from six yards off the inside of the upright.

Milan's desperation to get the game moving was evident when Inzaghi and Kaladze became stretcher-bearers to carry Biava off the field when he was suffering from cramp.

Another Gilardino header skimmed the woodwork, as did Roberto Guana's strike, while a Bresciano volley dipped just over the bar.

Milan threw on Ricardo Oliveira, a fourth striker, but Palermo were too organised and controlled the midfield in this situation. Gilardino thought he'd ended his goal drought in stoppages, but the header was disallowed for a push on Zaccardo.

Milan: Dida; Cafu, Nesta, Kaladze, Jankulovski (Maldini 64); Gattuso (Brocchi 73), Pirlo, Seedorf (Oliveira 77); Kakà; Gilardino, Inzaghi

Palermo: Fontana; Biava (Capuano 77), Barzagli, Zaccardo; Diana (Tedesco 82), Guana, Corini, Simplicio, Bresciano; Di Michele (Cassani 67); Amauri

Ref: Rocchi

“To come to San Siro and win is quite an achievement,” said the Rosanero boss after tonight’s shock 2-0 victory.

“In the first half we focused above all on holding them out, but during the break we discussed it and realised if we continued like that, Milan would score sooner or later.

“So we came out fighting, with more courage and playing looser, but still keeping our shape in defence. That was crucial in winning the game.”

Mark Bresciano opened the scoring and Amauri netted their second, although the Rossoneri managed to rattle the frame of the goal twice in the space of five seconds with Kaka and Andrea Pirlo screamers.

“We also had a little bit of luck, not just when Milan hit the woodwork, as we also struck the upright with Fabio Simplicio. I’m thinking also of their many chances in the first half.”

Palermo leap to the top of the Serie A table alongside Inter and the Scudetto talk is raised once more.

“We are obviously very happy to be the leaders,” noted Guidolin. “Bresciano was my Man of the Match tonight. He works hard and speaks with actions rather than words. I knew he’d be able to hurt Milan and he was excellent.”

“It was a decent performance until the second goal. President Silvio Berlusconi complimented the squad on the overall play and so did I, but we were punished by two distractions,” he said.

The 2-0 home loss was their first defeat in all competitions this season and now they have scored just one goal in the last four Serie A games.

“We did very well in the first half, but lost our heads after Mark Bresciano’s opener, even if there was that double chance to get back into the game.”

When it was still 1-0 to Palermo, Milan incredibly hit the frame of the goal twice in five seconds with Kaka and Andrea Pirlo rockets.

“We weren’t sharp enough,” continued Ancelotti. “We have to be more attentive in some circumstances and more determined in others. At least our overall play improved.”

Nonetheless, the side wasn’t booed off the San Siro pitch, even though they remain in 14th place – albeit with an eight-point Calciopoli penalty.

“The reaction of the fans at the final whistle was very important for us and the only thing that is comforting about this evening.”