Gerrard had been sidelined since late October with a mystery ankle infection but came on as a second half substitute during the Boxing Day draw with Blackburn Rovers
"Steven was back to full fitness before he got a freak injury and that's why he had to recover again, but the two of them weren't related and he is back and looks even better than he did the last time he came back," Dalglish told the club's website.
"But we are not going to be irresponsible and throw him in and take a chance. We know he's fit and we know he just needs game time in the same way as we monitored him through last time and we'll do the same this time.
"He looks superb at the moment."
Dalglish also believes that Gerrrard's return means the dressing room spirit at Anfield is finally operating at full strength once again.
"We have got three captains in the dressing room in Stevie, Carra and Pepe so we've always said it's best to have your strongest players, your best players, fit and around the squad, so we've got the three captains in there now and it must make us better and stronger," Dalglish said.
"Given a bit of luck in front of goal I think it will make us a lot stronger on the pitch as well."
The 31-year-old Gerrard has endured a testing time with his fitness as he had only returned to action in September from a six-month spell out with a groin injury before suffering his mystery ankle infection.