Kanaeva scored 116.900 to win gold, ahead of fellow Russian Daria Dmitrieva (114.500) in silver-medal position, with Liubou Charkashyna of Belarus (111.700) taking bronze.
The 22-year-old three-time world champion Kanaeva eased into a lead after the first piece of apparatus, the hoop, before a breathtaking performance with the ball, dramatic clubs routine and effortless display with the ribbon earned her a place in the record books.
'Gymnastics has been part of my life since I was six years old,' Kanaeva said.
'Since that time I have practised every day, eight hours a day. To succeed in achieving two gold medals is amazing.
'I love gymnastics and I want the audience to remember me.
I love gymnastics and I want the audience to remember me.Evgeniya Kanaeva
'It was not my target to be a legend, but I do like the sound of it.'
Russia's group triumphed in their All-Around competition thanks to two world-class performances with the five balls and the ribbons and hoops.
They scored a total of 57.000 to beat Belarus (55.500) into silver-medal position with Italy (55.450) claiming bronze.
Uliana Donskova, part of the six-strong winning Russian team, admitted the group believed they would win gold in London.
She said: 'It was a long time with hard work. We believed in our victory, but we didn't allow ourselves to relax. We didn't think about the medal.
'We are grateful to everyone. We are very proud to represent Russia and it's an unforgettable experience to hear the national anthem.'