Robert Lewandowski and Arjen Robben both scored twice as Bayern romped to a 6-0 triumph at the Benteler Arena.
Lewandowski's brace came in a first half of few chances, but Pep Guardiola's men picked off their opponents with ease in the second period following the 62nd-minute dismissal of Florian Hartherz for a foul on Robben that resulted in a penalty.
A magnanimous Breitenreiter acknowledged his side were left with little hope once they were down to 10 men.
"The penalty was the decisive situation," said Breitenreiter. "After that there’s no defending against a team that moves the ball so well.
"We've played the best team in the world with the best coach in the world."
Guardiola also opted to praise the opposition, insisting Paderborn have the necessary quality to avoid an immediate return to Germany's second tier.
Breitenreiter's side are a point above the relegation play-off place in 15th, having won just once since November 2.
Yet Guardiola said: "We took it very seriously indeed and let them have very few chances. It was hard work against a back five.
"I said beforehand that I thought Paderborn would stay in the Bundesliga, and now I'm sure of it."
Robben's two goals lifted him clear of Eintracht Frankfurt's Alexander Meier at the top of the Bundesliga scoring charts.
The Netherlands international now has 16 league goals to his name this term and thanked team-mate Thomas Muller for allowing him to take the penalty that brought his first against Paderborn.
"The penalty was a gift from Thomas. We talked about it over lunch before the game," Robben told Bayern's official website.
"Basti [Bastian Schweinsteiger] said: 'You're among the leaders in the scoring charts, so if we get a penalty you should take it.'
"I reminded Thomas about that and he let me have the penalty, so I want to say thank you to Thomas.”
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