Warnock said: "It was very pleasing for my 100th game, we played some good stuff, got some good goals and created chances today.
"I asked Victor to go and win us the game before the match, and he helped to do that by taking his chance very well.
"He should be in the Premier League now, he'd set it on fire and he'd probably find it easier there. In the Championship it's a bit more muck and nettles.
"We have a small squad, so we need the team spirit to be very good and the lads are giving me everything.
"If the penalty had gone in, things might have been different though."
Watford manager Malky Mackay said: "Letting in the two early goals was a real blow.
"Then we had the chance to get back into it with the penalty, once that misses maybe your chance has gone.
"And certainly after the third goal, it was going to be very difficult.
"Palace may not be able to spend big on players, like us, but if you looked at their team today they had played a lot more games than my lads at this level."