Thermodynamics of a three-level maser was studied in the pioneering work of Scovil and SchulzDuBois [Phys. Rev. Lett. 2, 262 (1959)]. In this work we consider the same three-level model, but treat both the matter and light quantum mechanically. Specifically, we analyze an extended (three-level) dissipative Jaynes-Cummings model (ED-JCM) within the framework of a quantum heat engine, using novel formulas for heat flux and power in bipartite systems introduced in our previous work [E. Boukobza and D. J. Tannor, PRA (in press)]. Amplification of the selected cavity mode occurs even in this simple model, as seen by a positive steady state power. However, initial field coherence is lost, as seen by the decaying off-diagonal field density matrix elements, and by the Husimi-Kano Q function. We show that after an initial transient time the field's entropy rises linearly during the operation of the engine, which we attribute to the dissipative nature of the evolution and not to matter-field entanglement. We show that the second law of thermodynamics is satisfied in two formulations (Clausius, Carnot) and that the efficiency of the ED-JCM heat engine agrees with that defined intuitively by Scovil and Schulz-DuBois. Finally, we compare the steady state heat flux and power of the fully quantum model with the semiclassical counterpart of the ED-JCM, and derive the engine efficiency formula of Scovil and Schulz-DuBois analytically from fundamental thermodynamic fluxes.