Being a new cat owner, I've heard of this, but not actually witnessed it for myself.
I got home from work, opened the door from the garage to the backyard and ... there she was, Daisy ...with her, um, friend. At first I didn't realize it was a mouse. I saw a skinny tail flicker and thought that it was maybe a dragonfly or something. Until I saw a littttle tiny mouse head pop up. Yep, those ears were unmistakeable. Daisy paused for a moment and looked at me - quite proudly I might add - before going back to teasing her prey. She gave it a few more swats with her paw until she, ahem, went for the jugular as it were.
At that point, I was pretttttty much done watching. I went inside and I'm not certain of the outcome. I can tell you, however, that when Kevin got home, he was not able to locate any remains. That, and Daisy didn't eat much of her dinner. Huh, betcha I can guess why.