Dynamos were drawn against the reigning league champions after edging out Black Eagles at the last 16 stage over the weekend.
The Durban-based side is now looking forward to facing who Larsen labels as the number one side in Africa.
Summerfield Dynamos had become the first team to qualify for this season's ABC Motsepe national playoffs but insists their focus is to make history in the cup competition.
"We knew from the beginning that at one stage we have to meet one of the big teams in the tournament," Larsen said.
"In the last five seasons, the club has not qualified for the last 32 in their history.
"Qualifying for the quarter-finals is a bonus, the occasion is now just for the players to go and play against the team that I rank as number one in Africa after beating Al Ahly twice.
"We know it's going to be a difficult task, let's be realistic.
"We are an ABC Motsepe side with a lot of amateur players and we are facing a star-studded team but stranger things have happened in football.
"It's not going to be a rollover, we are going to compete."
Dynamos boast a number of former top-flight players including Sandile Zuke, Lucky Nguzane and Lerato Manzini.
"Some of these players were no longer wanted by any club but we decided to give them a chance to revive their careers in football," added Larsen.