Paterson saw off Welsh international stars Alex Cuthbert and Leigh Halfpenny to the awards while Josh Navidi picked up the Most Promising Player of the Year and Matthew Screech was crowned Academy Player of the Year.
While the Blues sit seventh in the RaboDirect PRO12, Paterson has enjoyed a fruitful season in which he has played 19 times and scored one try and the flanker insisted he was delighted with his season.
"It's very humbling for me," the former Crusaders man said.
"It's been a great year for me personally on the field getting those string of games together under my belt at the beginning of the season was just what I needed and I've been enjoying my rugby. I can't ask for much more.
"I would like to thank all the supporters who voted for me and for welcoming me to Cardiff since I arrived.
"It's a huge honour, as is being voted for by my team-mates.
"Nobody can do it by themselves and I think there are a few boys who could have picked up this award."
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