Oster produced a sublime piece of skill to put Palace 2-0 up at Carrow Road, chipping goalkeeper David Marshall from just inside the box.
Matthew Pattison pulled a goal back for the home side but Palace held on to win 2-1, much to the delight of Warnock.
"You will never see a better piece of skill than that anywhere in the world," claimed the Eagles boss.
"It was a goal that was worthy of winning any game, although I've just reminded John that he was supposed to be marking Matthew Pattison when he scored!
"John has always had that sort of thing in him and I'm delighted with the way he is playing for us at the moment.
"He's never tackled in his life but we're teaching him to track back and he worked as hard as anyone out there, as well as providing that special moment."
Palace took the lead on 26 minutes when Craig Beattie sprung the offside trap to run through unopposed and slip the ball past Marshall.
Oster's goal gave the visitors some breathing space and although Pattison headed home Lee Croft's cross on the hour mark, the Canaries were unable to complete the comeback.
Warnock was delighted his side now appear to be making progress after a slow start to the season.
"We don't seem to like the early months of the season for some reason," he added.
"We should have been a lot higher in the table now but we've played six of the top nine sides away from home already so it has not been easy. The main thing is we're not too far behind.
"I was delighted with the way we played tonight, it was a really good all-round performance.
"There are a few kids in the side but I've got no problem throwing them in. The finances here aren't great and if I have to rely on a few more youngsters in the months to come then that is what I will do."
Norwich manager Glenn Roeder was angry that Palace's first goal was allowed to stand.
"When I first saw it I thought their player was four or five yards offside," he said.
"When I looked at it on the monitor it was a lot closer than that but the fact remains he was a yard off and the goal shouldn't have stood.
"I thought we were slightly the better team before that but goals change games and then we went and shot ourselves in the foot by conceding a second just before half-time.
"We gave the ball away cheaply and there was no way we should have allowed them to score. It was very poor defending.
"We need to start games like we played in the second 45 minutes. We pulled a goal back and then got into some excellent positions on both flanks but unfortunately the quality of our final ball wasn't good enough."
Sporting Life.