Since Joe Kinnear's appointment as Forest boss, the east midlands club have staged a remarkable recovery to climb away from the relegation zone with a run of five wins and four draws in 11 matches.
Mid-table respectability, which looked a forlorn hope in the final dark days of Paul Hart's reign, is now on the horizon courtesy of the fresh injection of hope supplied by the amiable Kinnear.
The 2-1 win was sweet revenge for Forest who suffered heartache at Bramall Lane just over 10 months ago when they were beaten 4-3 in a play-off semi-final thriller.
Forest were also humbled 3-0 at the City Ground at the end of January in the fourth round of the FA Cup, so to take six points off United in the league this season will be savoured by their supporters.
United are now in serious danger of missing the play-off boat this season as they have now lost their last two games, while it is one win in five from which they have taken a meagre five points.
Taylor, who scored 25 goals in 84 appearances in three seasons in the late 1990s for United, was on hand to head home the winner 16 minutes from time.
That was after Alan Wright had scored his first goal for three and a half years just before the hour mark to cancel out Marlon King's first-half opener.
King's 24th-minute strike was the highlight of a dire opening 45
minutes in which the Blades controlled the play, but were unable to put goalkeeper Paul Gerrard under any kind of pressure.
With what was Forest's only chance of the half, an Andy Impey drive rebounded off United skipper Chris Morgan, with the ball dropping perfectly for King to hammer home his fifth goal of the season past Paddy Kenny from 15 yards.
United came closest to responding five minutes before the break when Simon Francis powered in a header from a Wright right-wing free-kick to the near post, only for his effort to flash past the woodwork.
It was Wright, though, who eventually pulled United level in the 58th minute with a 20-yard free-kick which took a deflection off the edge of the wall in beating Gerrard.
No wonder Wright celebrated wildly as you have to go back to September 30, 2000, for his last goal while playing for Aston Villa in a 4-1 win over Derby.
But Wright's joy, and those of the 20,000 United fans was shortlived as Taylor returned to haunt his former club with his seventh goal of the season and a 74th-minute header to an Andy Reid corner, one which Michael Tonge could only help on its way into the net.
In claiming only their second away win since late October, Forest are now edging clear of the drop zone, while United are in need of their own late renaissance if they are to claim a top-six place.