We investigate properties of a two-level atom coupled to a single cavity mode, and driven by a strong, in general off-resonance, external field. The cavity field is tuned to resonance with a Mollow sideband. We show that the steady-state atomic population may be highly (nearly totally) inverted, a phenomenon forbidden in semiclassical theory, and that a strong enhancement of the resonance fluorescence results. This system is suggested as an alternative approach to create the atomic inversion necessary for laser or maser generation without using additional atomic levels. We also investigate properties of the cavity field, derive an analytical expression for the photon number distribution in the good cavity or strong-coupling limit, and discuss the conditions under which this system acts as a single-atom dressed-state laser.