The Norwegian international scored her first goal for the club in the recent FA Women's Super League win over Leicester, for which she has been nominated for the FA WSL Goal of the Month award.
Asked about her in his media briefing on Friday, Taylor was full of praise for Blakstad.
"I’ve been very impressed with Julie" he stated.
"She is a player we identified for a long period before we could acquire her. It is always difficult when you join part way through a season.
"It is always difficult to establish yourself at that point. She is a great kid to work with, determined to improve and I think she has enjoyed the environment we have got here.
"She has been a great addition for us. We didn’t expect her to settle as quickly as she has. It is difficult for young players coming from another country. She has done really well, that’s for sure."
The 20-year-old can play in a number of positions and Taylor believes where she ends up on the pitch will depend on her.
He said: "It depends on how Julie does.
"She has got the ability to play LWB, LW and even in the 10 if she improves her quality between the lines. I think most likely as a winger.
"When we play her at full back it is with the intention to get high and wide. She has got competition on the wing - we have got four or five wingers a the club. Julie has improved a lot and she has huge potential."
Watch the full video from Taylor's press conference on Friday above.
READING V CITY
Gareth Taylor’s side complete their FA Women's Super League season at Reading's Select Car Leasing Stadium on Sunday 8 May with kick-off scheduled for 12:00 (UK).
The game is available to watch live on the FA Player while you can also follow updates and keep across the key moments from the Academy Stadium over on Twitter: @ManCityWomen.
A detailed match report and reaction will also be available soon after the final whistle, while highlights and a full-match replay can be accessed on Monday.
This is our final league game of the season. We are currently third in the table, the final Champions League place, two points ahead of fourth place Manchester United.
Our rivals and challengers for third are away to Chelsea at the same time, so City fans may have one eye on that fixture. However, qualification is in our hands.