Both Stevan Jovetic and Jesus Navas, summer signings from Fiorentina and Sevilla respectively, gave lively displays against the Serie A side in their pre-season encounter
The Premier Leagur runners-up scored five goals in the opening 36 minutes during the Audi Cup semi-final at the Allianz Arena, with Navas and Jovetic combining to set up David Silva's opener in the fourth minute.
And City's new Chilean boss was delighted with his side's first half performance, despite conceding three times, singling out his new attacking signings for particular praise.
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The manager was disappointed with how his side allowed AC Milan to fight back in Munich and did not rule out potentially signing more players before the 2013-14 campaign begins.
"I am very happy with the squad we have at the moment but that doesn't mean that [we] can't make a change," Pellegrini said.
"We have 15 days in August before the Premier League starts. July has just finished so we'll see.
"We are not in a hurry searching for any special players but everything can happen from now until August 18."
City will face Audi Cup hosts Bayern Munich in the final of the tournament on Thursday, while Milan will take on Sao Paulo in the third-placed play-off after the other semi-final ended 2-0 in favour of the home team.
Milan attacker Kevin-Prince Boateng did not have any excuses for his side's dreadful start against City.
"We knew they [City] have a lot of quality, we were sleeping at the beginning, we had heavy legs as well but these are not excuses," Boateng said. "We weren't on the pitch for the first 25 minutes."