Abstract
In this paper, we investigate the dynamics of two two-level atoms interacting with a two-mode field inside an optical cavity, in presence of a nonlinear Kerr-like medium as well as the Stark shift. We derive the exact analytical solution of the time-dependent Schr\"odinger equation that provides a comprehensive framework for analyzing the system's quantum properties. To characterize the nonclassical features of the radiation field, we examine photon number distribution, second-order correlation function g²(0), squeezing properties, and Mandel's Q_M parameter. These properties reveal significant insights into the quantum statistical behaviour of the field and its deviation from classicality under different interaction regimes. In addition, we quantify the atom-atom entanglement using linear entropy which captures the mixedness of the atomic subsystem and elucidates the interplay between atom-atom interactions. The results highlight the crucial role of nonlinear interactions and the Stark shift in shaping the quantum correlations and nonclassical phenomena of the system.