The victory over Hibernian stretched Caley Thistle's unbeaten home record and condemned the visitors to their first defeat in six games.
Two goals from Billy McKay and a driven strike from captain Richie Foran gave the Highland side an unassailable advantage and ensured they would return to the top of the table after Celtic's win against Kilmarnock earlier in the day had briefly seen them take over.
Recalling Gary Warren to the starting line-up after he was rested for the League Cup win over Dundee in midweek meant Butcher had named the same side for eight consecutive league games and he was pleased that the players raised their game.
A 1-0 defeat at Aberdeen last week came as a jolt to Inverness, and they were far superior to Hibernian.
"I said to the players before the game that because it's been the same side for seven games running that Hibs will know how you play," Butcher said.
"I told them to play differently, and better, than the past few games and they did that today, I thought they were excellent.
"I thought we did really well out there today and I enjoyed watching the performance. It was great to be back out playing at home.
"When I first came here it maybe wasn't the best place to play but we enjoy it. We moved the ball around well and our passing was great. Normal service has been resumed after last week."
The defeat for Pat Fenlon's HIbernian side was a first for the Edinburgh men since a 2-1 reverse at Kilmarnock on August 24, and their third of the season in the league.
Fenlon conceded his side were second best and got what was coming their way.
"We've lost today for the first time in six games and to be fair we didn't deserve anything from the game," he said.
"They had more chances than us and took them and we gave away a sloppy first goal. In the second half they were the better side.
"The first goal was a poor mistake. It's hard enough coming here without gifting goals away to the opposition. It makes it more difficult.
"During the first half I didn't think there was much in the game but in the second half we just didn't turn up.
"We were trying to get subs on before the second and third goals but in the end it just wasn't to be."
The win sees Caley Thistle stand ahead of Celtic at the top of the table courtesy of a superior goal difference, while Hibernian lie in fifth place on 11 points.