The hosts took the lead inside 60 seconds through Jessica Sigsworth, but City managed to bounce back with goals from Caroline Weir, Keira Walsh, Lauren Hemp and Laura Coombs.
And Taylor feels that his players rose to the occasion at the King Power Stadium.
He said: "(We played some) really good football, on a nice big pitch, a big arena.
"Some of the play was top. One of the goals, I think it was Laura Coombs', was brilliant from back to front.
"We had a couple of those opportunities where we built from the goal kick, playing through the lines, with Georgia (Stanway's) intelligence in positioning.
"I think the players really enjoyed playing that today, the way that we dominated.
"There were some difficult moments but we managed them really well."
Hear the boss' thoughts in full via the video above...