Pardew was full of pride after the final whistle of Saturday's Premier League clash at Selhurst Park.
The Magpies boss, who spent four years with the Eagles as a player and helped them reach the 1990 FA Cup final, was able to watch on with delight as his side stylishly brushed Palace aside in wet and windy conditions.
"As an ex-player, to come back here with a team that plays as well as that, is almost dreamlike. It was a great performance from us," Pardew told Sky Sports.
"Palace had their tails up, and I don't think many teams will come here and win 3-0. I'm absolutely delighted with my players. They were terrific, and it's a sweet feeling.
"I think the key was to control the possession, and make sure the ball didn't come in our box. The best way to do that is to keep it.
"We did that well today. Sometimes it's not always easy to do that on this pitch and with the conditions that we had. But we couldn't have been more accurate today, and we had some great play."
Pardew was asked for his thoughts on goalscorer Yohan Cabaye, who was the man of the match on his return to the side following a one-match ban.
"His contribution is very important - he gives us X-factor, and that's what you need," added the Magpies boss.
"When you're a team at the top of the Premier League, you need to have real quality. Hatem gives us that too, coming off the bench.
"But you still need a platform for those players. Coloccini, Debuchy and Tiote were immense today. It takes all those ingredients, so I don't put Cabaye above the others. I thought they were all terrific."
Newcastle stayed sixth and are only six points behind league leaders Arsenal - a far cry from 12 months ago, when they were 14th in the table, only five points above the drop zone.
"It says we've got a good spirit, and a good hard-working attitude," stated Pardew. "We're difficult to break down - I don't think Palace had many chances today. And we score goals in open play.
"The only thing you would have to say about us is we could still do a little bit better on set-plays, and there's always room for improvement.
"But I'm not complaining tonight. I've had a really lovely day, and it all makes for a merry Christmas - and the dinner will certainly taste sweeter than it did last year!"