The young midfielder overcame established favorites such as Fulham's first-choice striker to win his country's Player of the Year award.
Milanov, 20, represents the youngest person to ever receive the plaudit, and is the first Bulgaria-based player to receive the award since 2001.
The midfielder has registered an impressive eight goals in 14 appearances and has been instrumental in helping his team climb to third place in the table, only nine points off the top spot.
Speaking after the ceremony, he said: "It is a great honor for me to win this accolade. I would like to thank my club, Litex, my team-mates and especially my coach, the great Hristo Stoichkov, who has always kept faith in me."
In addition to the decoration of Milanov, the event saw the recognition of 16-year-old Antonio Vutov who received the 'Revelation of the Year award,' thanks to promising showings from the wing for club Levski Sofia and the Bulgarian Under-17 side.
Stiliyan Petrov, Aston Villa's 33-year-old midfielder and winner of the Bulgarian player of the year award in 2003, was also recognized for his contribution to the prestige of Bulgarian athletes at home and abroad.