Kelly Darby received a second yellow card on the stroke of half-time as Wolves were unable to claw themselves back into the game.
An improved second half saw them come close, and while Milgate was proud of the side he was disappointed with the decision to send Darby off.
"The girls were excellent in the second half," he said.
"We had to change after the sending off. I don't think it's a second yellow card.
"We got told it was stopping a promising attack but I don't think it was on the half-way line, that's my opinion. That changes the game.
"We created a lot of chances in the first half but just didn't quite take them.
"In the second half we had to change shape and roles but what a valiant effort, which you would expect nothing less from this group.
"Against a very good team that could have hurt us but they stuck in there and arguably created more in the second half."
Milgate has been looking after the team in the absence of manager Dan McNamara, who is overseas on RAF duty, and his close friend paid tribute to the boss.
Milgate added: "He's close to me and I have to pay massive respect to Macca. A great football person and a great friend.
"What he's created in three years, the culture and environment, that's what we've seen today. It's not anything I've done – the staff are class.
"In the second half that was Macca's Wolves. Sport just hurts you now and again and we couldn't get over the line."