With the help of an SU(3) dynamical algebraic structure, we find an exact solution of the Milburn equation for the system of a three-level atom in the Ξ configuration interacting with one quantized field mode with arbitrary detuning. The exact solution is then used to discuss the influence of the intrinsic decoherence on the nonclassical properties of the system, such as collapes and revivals of the atomic populations, oscillations of the photon number distribution, and squeezing of the radiation field.