At tea New Zealand, who had been 14 for two, were 57 for two in reply to England's first innings 364, a deficit of 307.
The Black Caps, who must win this match to level the series at 1-1, had already suffered in the field as England, who resumed on 273 for seven, added a valuable 91 runs on Friday.
Both Stuart Broad, who made 64 on his Nottinghamshire home ground, and fellow fast bowler James Anderson (28) struck their Test-best scores, frustrating the tourists in an eighth-wicket stand of 76.
Then Anderson, in overcast conditions, produced two superb outswingers which saw him take two wickets for five runs in 11 balls, his third delivery clean bowling opener Aaron Redmond for one.
Kiwi dangerman Brendon McCullum, promoted to No 3 in place of the dropped James Marshall, was playing in this match as a batsman only after a back injury meant he was unable to keep wicket.
But he managed just nine before, aiming across the line, he too lost his off-stump.
Jamie How was 23 not out at tea and Ross Taylor 20 not out.
Broad, 15 not out overnight, was dropped twice, most damagingly of all on 21 when McCullum floored a routine second slip chance off Chris Martin.
New Zealand captain Daniel Vettori, in common with many Test skippers, allowed England some 'gift' runs by refusing to post a third man even when Broad and Anderson, who both bat left-handed but bowl with their right, kept edging the ball there.
Broad, whose father Chris, the former England opening batsman, also played for Nottinghamshire, beat his previous best of 42, against New Zealand at Napier in March, when he cover-drove Iain O'Brien for four.
Anderson, curiously sent in as a nightwatchman ahead of regular No 9 Sidebottom, slogged-sweeped left-arm spinner Vettori for four to surpass his previous Test-best score of 21 not out against South Africa at Lord's in 2003.
The ever-economical Jacob Oram (one for 35 in 22 overs) dismissed Anderson whem debutant wicket-keeper Gareth Hopkins held his third catch.
Broad spent 25 balls either side of lunch one run shy of fifty but kept his cool and reached the landmark when he turned Vettori for four through mid-wicket.
Martin, who like Vettori struggled for line and length, saw off Broad by bowling him from around the wicket.
The 21-year-old Broad, in his sixth Test, batted for nearly three hours, facing 132 balls with 10 fours.
|A. Strauss||c Taylor||b Mills||37|
|A. Cook||b Mills||6|
|M. Vaughan||b O'Brien||16|
|K. Pietersen||c Hopkins||b O'Brien||115|
|I. Bell||lbw||b O'Brien||0|
|P. Collingwood||c Taylor||b Mills||0|
|T. Ambrose||c Hopkins||b O'Brien||67|
|S. Broad||b Martin||64|
|J. Anderson||c Hopkins||b Oram||20|
|R. Sidebottom||not out||7|
|M. Panesar||c McCullum||b Vettori||0|
Fall of wickets: 1-14, 2-44, 3-84, 4-85, 5-86, 6-247, 7-262, 8-338, 9-361, 10-364
New Zealand 1st Innings
|J. How||not out||23|
|A. Redmond||b Anderson||1|
|B. McCullum||b Anderson||9|
|R. Taylor||not out||20|
Fall of wickets: 1-2, 2-14
Toss: New Zealand
Umpires: Steve Bucknor (WIS) and Darrell Hair (AUS)
TV umpire: Peter Hartley (ENG)
Match referee: Ranjan Madugalle (SR