With Penn holding its largest lead at 18-8, Frasor, whose season was previously in jeopardy due to an ailing right foot, led a five-man substitution package Roy Williams inserted to send a message to his team.
Showing no apprehension whatsoever, Frasor knocked down jumpers on back-to-back UNC possessions which helped catapult the Tar Heels (13-1) past the Quakers of the Ivy League.
"Coach Williams is obviously known for that five-man substitution when effort plays aren't being made," Marcus Ginyard said. "The five that got subbed in, we knew what we had to do. We had to raise the intensity level."
The Tar Heels then went on a 31-7 run over the next 10:45 and never looked back, as they blew by a seventh over-matched non-conference opponent in a row following wins over Ohio State and Kentucky a month ago.
Frasor finished with five points in just seven minutes of action.
"It felt good," Frasor said following his return. "The doctors say it's healing, so I can finally get back to playing. I was excited."
Quentin Thomas also returned from injury, after missing nine games with a stress fracture in his left foot.
"Needless to say it's good to have Bobby back and good to have Quentin back, especially at a time where Ty Lawson's wrist is a little painful and a little sore," Williams said.
Lawson, who nicked up his sore wrist again in the game, finished with just four points and two assists. However, in Frasor's and Lawson's absences, he was spectacular in leading the ACC with a 2.9:1 assist-turnover ratio.
"That kind of stretch by a freshman point guard is about as good as you see coming out of the gate like that with little experience," Williams said.
Penn, perhaps most remembered by UNC fans for its 72-71 upset of the Tar Heels in the 1979 East Regional second round game, started strong in its inaugural visit to Chapel Hill, hitting 56.5 percent of its first half shots. However, Carolina also forced the Quakers into 15 turnovers in the opening period in taking a 39-30 lead to the locker room.
Terry scored all but six of his points in the second half on 7-of-10 shooting for the game. He also led the Tar Heels with nine rebounds.
"I chewed his rear end pretty good and he deserved it," Williams said concerning his halftime motivation of Terry. "After that, he was more active passing the ball and defending. Reyshawn Terry is a guy I'm going to go down as saying I'm about as proud of a player as I've ever coached."
Wayne Ellington scored 17 points and Brandan Wright added 12 to round out the Tar Heels' list of double-figure scoring.
Wright, who tallied just three first half points, has yet to score less than 10 in a college game.
Hansbrough had four steals to increase his team-leading mark to 22 for the season.
A pair of Dewey Burke threes with the clock winding down assured the 100-point requirement for a Bojangles' biscuit discount on Thursday. The Tar Heels – averaging 89.9 points per game – have eclipsed the century mark five times this season.
"If it takes biscuits to keep everyone in their seats to the very end, then so be it," Williams said. "Bojangles is going to be fired up tomorrow."
UNC holds a 4-2 lead in the series with the Quakers, which includes NCAA Tournament wins in 1972 and 1987 for the Tar Heels to go along with their aforementioned "Black Sunday" defeat.
Quakers coach Glen Miller said, "We did some good things for a portion of the game, but you have to play 40 minutes against North Carolina – an explosive team. It's not going to get any tougher than this for us."
Carolina begins ACC play when it hosts Florida State (12-3, 0-1 ACC) at 7 p.m. on Sunday. The Seminoles fell to No. 18 Clemson on Wednesday, 68-66.
The Tar Heels final non-conference regular season tilt takes place on Jan. 27 at Arizona – ranked No. 7 in the country this week.
One out-of-town reporter's question concerning UNC's chances in March didn't sit well with Williams.
"I don't give a ‘frick' about the NCAA Tournament," Williams said. "We've got Florida State on Sunday and I don't know who we play after that. I think we will face (Penn's) kind of competitiveness in the ACC. There are 16 games in the ACC, and we're going to face every kind of team."