The Wales centre scored one of the Lions' five tries in a 47-17 victory, as well as having a hand in the other four scores in a superb individual performance.
Leigh Halfpenny crossed for a brace in a 30 point haul while Jonny Sexton and Tom Croft were also on the score sheet. But it was the performances of Davies, as well as captain Sam Warburton, which stood out.
"The Waratahs were really tough, the score didn't reflect how well they played," said Warburton, who impressed at the contact area.
"The forwards did a great job and the backs were very clinical so it was a great job all round. Next week is going to be immensely tough and it's going to be another challenge again.
"But we've got another game against the Brumbies and until that game is over, it will be hard to look forward to the Test."
With the first clash against Australia a week away, today's game was a chance for some of the Lions to put their names into the hat for a starting spot. And Davies, who showed his creative skills out of the tackle on numerous occasions, was certainly one to do just that.
It took just 43 seconds for the Wales man to put his stamp on the game, his pass sending Simon Zebo to the line though the Irish wing, on his tour debut, was tackled into touch by Drew Mitchell in the act of scoring. Halfpenny then got the ball rolling with a monster penalty before Sexton went over for the first try of the day.
The score came from a poor kick from the Waratahs, their chase almost non-existent. It gave the Lions plenty of time to run the ball back, that man Davies putting Sexton into score. Halfpenny converted and although Tom Carter replied with a score for the Waratahs, Brendan McKibbin converting, the Lions went on to lead at the break.
Two Halfpenny penalties pushed Warren Gatland's men further clear before the full back, who again boasted a 100 per cent record with the boot, went over for his first try on the half time whistle. It was Davies who gave the try-scoring pass following some impressive carrying from lock Alun Wyn Jones.
Thirteen points clear at the break, the Lions added three more tries in the second half. A lovely combination between Davies and centre partner Jamie Roberts put Halfpenny over for his second though just minutes later, Carter responded again for the Waratahs.
That was as good as it got for the Australian side though, Halfpenny kicking his fourth penalty before Davies intercepted a pass, his break setting up a score for Croft after the ball had been recycled.
The hour mark saw Gatland flood the pitch with replacements and the Lions head coach was dealt a worry when Roberts went off with a hamstring problem.
The loss of the Cardiff Blues centre would be a huge blow to Gatland but with Davies performing to such a high standard today, he knows Roberts' fellow Welshman would be a more than adequate replacement.
And at the death, there was still time for Davies to put the icing on the cake of his own performance. The Wales centre picked up a loose ball and ran in unopposed to complete the scoring, putting his name in the hat for a starting spot against the Wallabies in the process.
NEW SOUTH WALES WARATAHS:
Tries: Carter (2); Conversions: McKibbin (2); Penalty: McKibbin.
BRITISH & IRISH LIONS:
Tries: Sexton, Halfpenny (2), Croft, Davies; Conversions: Halfpenny (4), Farrell; Penalties: Halfpenny (4)