Abstract: A compact burner-boiler combination having an improved heating cycle for effecting substantial fuel saving and maximum boiler and combustion efficiency in a relatively simple and expedient manner. This is attained by a compact boiler construction utilizing an improved burner construction and method of combustion in which a liquid fuel is gasified by the heating products of combustion to form a homogeneous fuel gas-air mixture prior to combustion so as to effect a substantially stoichiometric burning of the fuel so as to result in a high velocity and a very high flame temperature (approx. 4100.degree. F.) and to cause the breakdown of a portion of the hydrocarbons into their basic component elements so as to make them available for diffusion burning.