How does cid make power?

You missed one Rob. Horsepower is NOT the result of torque. It never is. It is the result of torque and RPM. You can have all the torque in the world and without RPM you have zero horsepower.

A quick look at a dyno graph shows this clearly. As torque starts to fall after its peak, the horsepower keeps going up. If you had to have torque to gain horsepower, once torque peaks and starts heading down (or even if it just went flat) you’d lose horsepower.

You absolutely can not ignore RPM in figuring horsepower. And without horsepower a car won’t move.
Steam engines and electric motors make their highest torque at 0RPM. That gives zero HP as no motion involved. An ICE requires some RPM to create the airflow for the engine to run for combustion. In steam and electric, the chemical reaction known as combustion occurs outside the engine or motor. They use an independent energy source.
An ICE dyno graph of a well thought out set of components will start with a fairly high torque for the displacement at 3,000RPM and remain fairly flat until intake flow is restricting cylinder filling. As long as the torque does not drop like a rock the power curve will continue to climb for another 1,500 to 2,000RPM.