According to football411.com website, the former Bafana Bafana defender made his long-awaited Amakhosi debut as a substitute against Moroka Swallows on November 20 and has since made three starts at left-back, including this past weekend's Soweto Derby against bitter rivals Orlando Pirates.
And Baxter is convinced Masilela will only get better as the former Getafe and Maccabi Haifa defender nears 100% fitness.
"(Masilela) went through a long layoff and probably he's got to work on his match fitness. It was great for him to go through the full 90 minutes against Pirates and we need to keep him strong," the Englishman told Football411.
"At the same time, he's got to blend in with the way we play and he's got a bit of a challenge, but I'm pleased with the way he has approached the challenge.
"We can get him higher up the field a lot more. He did it in the second half against Pirates and in the previous game against Ajax Cape Town he was going up a lot so I am pleased.
"I'm glad we have the reserve league back, which means he will have more time to get himself 100% fit and from there, he will get much better," he added.
Masilela could be in line for a return to Bafana after it was confirmed Mamelodi Sundowns left back Punch Masenamela will miss the 2013 Africa Cup of Nations finals after undergoing knee surgery.