An evaporator with integrated heat recovery incorporates a vapor tube in a combustion chamber surrounded by a water jacket. The water jacket is in fluid communication with an exhaust gas heat exchanger. Coolant circulates through the exhaust gas heat exchanger to recover heat from exhaust gasses leaving the combustion chamber and then circulates through the water jacket surrounding the combustion chamber to recover heat not delivered to the operating fluid. The evaporator may incorporate a condenser within the housing and in fluid communication with the exhaust gas heat exchanger and water jacket. Coolant may enter the evaporator housing at the condenser before circulating through the exhaust gas heat exchanger and water jacket.