Despite racing into an early 2-0 lead thanks to goals from Lewis Fiorini and Morgan Rogers and creating a host of chances, City were forced to withstand a nervy finale after Villa pulled a goal back five minutes from time.
And the Academy boss said it was a timely wake-up call to his squad about the need to take their chances at this level,
“We had to work a lot harder in the game tonight than we needed to and I’ve said to the players that was down to us," Taylor reflected after Wednesday night's win.
“For the first half hour we played some really good stuff, but we lost control before half time.
“We didn’t press well enough and I never really felt that comfortable in the second period.
“There were little moments and the keeper made some good saves but 2-0 is a funny score line and at the end it could have been really tight.
“But we should have sealed the game a long before and that needs to be a lesson for the players.
“It’s so important to put your chances away, especially in the FA Youth Cup.
“There were some quality performances in patches and the goals we scored were good but we just should have had more.”
City’s reward is a fifth-round home tie against Fulham who secured a 2-1 win away at Sheffield United on Wednesday.
And the City boss is under no illusions that his players will face a demanding test against the Londoners.
“Fulham will be a tough game,” Taylor warned.
“They always do well in this competition; they are doing well in the Southern Under-18 league too and have good players.
“And it's one where we going to need to be at it as if not it's always on the edge.”