"They turn games, class players," Raiders coach Ricky Stuart said of Milford.
"On the back of all the grunt and the grind, and the effort from a number of individuals in the team, his bit of class was a big part in the (win)."
With 12 minutes remaining and the Knights leading 20-16, Milford provided the spark with a 40m burst that led to Paul Vaughan diving over.
Edrick Lee's last-minute four-pointer sealed the triumph to leave the Knights winless after two rounds.
Newcastle coach Wayne Bennett was far from impressed that the pass from Raiders centre Jarrod Croker to Vaughan for the crucial try that levelled the scores wasn't pulled up.
Referee Adam Devcich looked set to call it forward, putting his whistle to his mouth but allowing play to continue as Vaughan set sail for the tryline.
"I think it was pretty obvious to everybody at the ground (it was forward). There is not a lot of luck going our way (with calls)," Bennett said.
"Three or four things tonight was line ball stuff and didn't go our way. In a tight game like that, that's the difference.
"It was a much improved effort on last week. We were a bit stiff to lose there tonight. We didn't play badly. We played a quality game of football."
Croker scored two tries for the Raiders and Josh McCrone got the other four-pointer for the visitors with a slick dart from dummy half.
Knights debutant Matt Minto was involved in Newcastle's first try when he delivered a cut-out pass to send winger Akuila Uate on a 30m run to the tryline while second-rower Beau Scott's powerful try was the highlight of the first half for the home side.
An in-goal collision between Reece Robinson and Milford led to Knights winger James McManus planting the ball down in the 59th minute to leave Newcastle behind 16-14.
Then halfback Tyrone Roberts stepped past prop Brett White to score a 30m try to give the Knights a four-point lead after 65 minutes before Milford's match-turning run.
Canberra second-rower Joel Edwards was placed on report for a lifting tackle on forward Chris Houston shortly before halftime.
- AAP