Resuming at 4-15, the Warriors recovered somewhat to post 180 with Mitch Marsh top scoring with an unbeaten 92.
He received valuable support from older brother Shaun (40) with the pair combining for a 98-run partnership that salvaged some respect.
Josh Hazlewood was the chief destroyer, finishing the innings with the stunning figures of 6-50 from 22 overs, while Trent Copeland, Stephen O'Keefe and Moises Henriques chipping in for one each.
The Warriors removed both NSW openers for ducks to gain some momentum, but Steve Smith (21) and Ben Rohrer (24) helped the Blues reach 2-46 at stumps.
Ryan Carters was trapped lbw by Jason Behrendorff on the opening ball of the innings and Nic Maddinson edged a Ryan Duffield delivery to Shaun Marsh at second slip in the second over to leave NSW struggling at 2-4.
But Smith and Rohrer safely negotiated their way to stumps to keep their side firmly in control of the match.