We analyze the driven resonantly coupled Jaynes-Cummings model in terms of a quasienergy approach by switching to a frame rotating with the external modulation frequency and by using the dressed atom picture. A quasienergy surface in phase space emerges whose level spacing is governed by a rescaled effective Planck constant. Moreover, the well-known multiphoton transitions can be reinterpreted as resonant tunneling transitions from the local maximum of the quasienergy surface. Most importantly, the driving defines a quasienergy well which is nonperturbative in nature. The quantum mechanical quasienergy state localized at its bottom is squeezed. In the Purcell limited regime, the potential well is metastable and the effective local temperature close to its minimum is uniquely determined by the squeezing factor. The activation occurs in this case via dressed spin flip transitions rather than via quantum activation as in other driven nonlinear quantum systems such as the quantum Duffing oscillator. The local maximum is in general stable. However, in presence of resonant coherent or dissipative tunneling transitions the system can escape from it and a stationary state arises as a statistical mixture of quasienergy states being localized in the two basins of attraction. This gives rise to a resonant or an antiresonant nonlinear response of the cavity at multiphoton transitions. The model finds direct application in recent experiments with a driven superconducting circuit QED setup.