The non-degenerate two-quanta Jaynes-Cummings model governed by Milburn equ
ation is studied. This models the decoherence of a quantum system as it evo
lves through intrinsic mechanisms beyond conventional quantum mechanics gov
erned by the Schrodinger equation. The exact solution is given. Then it is
applied to investigate the effects of the intrinsic decoherence on nonclass
ical effects (population inversion, oscillations of the number distribution
, photon antibunching effect, the cross correlation and squeezing of the ca
vity field). We show how the intrinsic decoherence suppresses the nonclassi
cal behaviour in this model, for the off-resonant case.