It took me a while but I thought Liverpool actually played well in that game in certain periods, the way you passed the ball quick and decisively Real Madrid couldn't get close at times.
Yes, Real Madrid did have several chances but I certainly thought it was one of Liverpool's better performances this season, if you play like that against majority of Premier League teams, you'd definitely create chances. However your biggest problem at the moment is in the final third, evident against Madrid as well, when you get to that part of the pitch there is no killer instinct or someone who is going to make something happen, like Suarez.
Sturridge is one of these players but Balotelli and Borini are not. Balotelli may have a moment of magic every once in a while but he doesn't create something out of very little or nothing, like Suarez did.