It was all the sweeter for Warnock, who was barracked as usual by the home fans for the role he played as Sheffield United manager during the infamous clash with Albion in 2002 that was dubbed 'The Battle of Bramall Lane'.
Warnock said: "This is what we are in the game for. Two weeks ago, the defeat to Scunthorpe was probably the lowest part of my career and this result is one of the highest.
"I thought we were super. Everyone gave me everything. We didn't come to defend, we came to have a go at Albion. We pushed right up on them and I think we deserved the win.
"We had read that this was going to be Albion's ninth game without defeat and I think things like that help you.
"You have to defend for your lives against a team like this who are scoring goals for fun. That is what makes the result so satisfying for me and I am really proud of my lads."
Warnock claimed the result could ultimately help Albion.
He added: "I hope they go up and I think this result will help them. I think it will give them a little kick up the backside and hopefully they can start off an another run."
Albion would have matched the club's best ever start to a league season with a nine-game unbeaten run had they avoided defeat against Palace.
But missing out on that landmark was of little concern to manager Roberto Di Matteo who was more concerned by his side's punchless display.
Di Matteo said: "It was not a convincing performance and consequently it brought us our first defeat.
"It was not the usual West Bromwich Albion that we have seen so far and that is the most disappointing aspect for me.
"We want to play and perform and if you do that usually over the long term you get something out of the games.
"But it was a very soft goal for us to concede. It was a straight ball into the box and we should be able to defend it better than we did."
Things could have been different had Luke Moore not wasted two openings before N'Diaye struck, and Di Matteo added: "In tight games like that if you get a chance or two we need to be clinical and put them away.
"You will not get too many when teams defend with all their men and it becomes difficult.
"I think every team who comes here does that and we need to cope with that.
"Now we have to make sure that we are back to our normal selves at Barnsley on Tuesday."
Albion should have been in control before N'Diaye struck but paid the price for Moore's misses.
On both occasions Moore was set up by right wing crosses from Gianni Zuiverloon.
But the former Aston Villa striker blazed the ball over the bar from close range in the 23rd minute and was then denied by an excellent save from Julian Speroni 13 minutes into the second half when he only had the goalkeeper to beat.
That was the turning point of the match as Palace made the decisive breakthrough just five minutes later.
Danny Butterfield swept a right-wing free-kick into the Albion area that Alan Lee flicked into the path of N'Diaye who beat Scott Carson from close range at his near post.