In-form Inverness leapfrogged Hibernian into second place in the SPL on Saturday by beating them 3-0, while struggling County were losing 3-2 at Motherwell to keep them in 10th place without a win in six games.
Caley won 3-1 when the two clubs met in their first SPL derby in October and in the recent William Hill Scottish Cup fourth round meeting in Dingwall they grabbed a dramatic last-gasp equaliser against the 2010 finalists to ensure the sides would lock horns again at the Tulloch Caledonian Stadium.
While all the signals point to a Caley win, Butcher - whose side have lost only once in the last 15 games and have already reached the Scottish Communities League Cup semi-final against Hearts in February - said: "We will give them respect and they deserve that.
"They are a fantastic club. They have come a long way in a short space of time, very much like ourselves, and they have been a credit to themselves in the SPL.
"But it's not about SPL football, it's about the cup and look at their recent history; they have been to a cup final, they have had some terrific results in the cup.
"They are scoring goals, Rocco Quinn is on fire at the moment, and they have good delivery on free-kicks and corners, so they are a threat.
"But having said that, in the two matches against them we have scored three goals in each and we aim to score and win again.
"So everyone is looking forward to it. There have been two crackers and this is the third instalment. There has to be a winner and there has to be a loser so it has the making of another entertaining match.
"There have been so many twists and turns in the previous two matches I'm sure there is going to be more in the third."