Taylor has had to recover from two serious knee ligament injuries in the last two years, and Wednesday's fourth-round tie at the Etihad Stadium was his first start for Newcastle since August 2012.
Goals from Rolando Aarons and Moussa Sissoko gave Newcastle a surprise victory against the League Cup holders.
And Pardew was quick to hail the returning Taylor, who put in an accomplished performance at the heart of Newcastle's midfield.
"He did outstanding," said Pardew. "His performance was what he is all about - discipline and quality, which is what he's like as an individual.
"You have to remember when you can't do what you want to do, it's very frustrating as a professional athlete.
"He's been restricted to what he does best, so of course he's going to be emotional.
"But what a great night for him and us.
"We're just delighted that we managed to give him a platform.
"He had 10 good players around him and he couldn't ask for more than that."
Newcastle will face Tottenham in the last eight after Mauricio Pochettino's side beat Brighton and Hove Albion in their fourth-round clash.