Sardool, History of Islam by Dr. Rauf is a very good book. It's got everything in chronological order and is detailed where it should be detailed.
The Islamiat books prescribed for UETians as part of their years syllabus are in Urdu, I'm not sure if you're looking for books in English only. The Urdu books are available easily in Lahore Urdu Bazaar, and the same books are used by almost all BSc and BA courses in different colleges.
Islamiat books in Urdu are abundantly available almost in every book shop in town. Urdu Bazaar, Ferzosons, Vanguard Books, Multiline Books on Hall Road, Anarkali Bazaar... and many more. Ferozsons have a good collection, the Mall Road branch, not the others they have opened up in Lahore Airport and Defence.
(1) The syllabus of Islamic Studies in UET was a well planned one and most of it was not taken from Matric, FSc. etc. I am particularly referring to the translation/explanation of some surah from Holy Quran. Nobody teaches Surah Hujraat, Surah Furqan, and Surah Noor in Matric/FSc. Also the selection of hadith was pretty good.
(2) The Islamic studies department was monopolized by teachers belonging to a certain sect (Ahl-e-hadeeth, to be precise). Not only that they preached their version of Islam but they were also quite uni-dimensional and narrow minded in their thinking. I can also narate several examples like the one cited by Charlie.
Personally I am not against teaching Islamic Studies as well as other humanity subjects in UET. As engineers, we should not just focus on hard core engineering but should be able to view the world in a non-engineering manner as well
"What is the prescribed book at UET and where could I buy it?"
Accidently I got my hands on my last years notebook. I remembered that I had also got the sharaf of attending the first lecture of ISLAMIYAT where the teacher dictated us the course for 3rd year/5th term.
I am not sure if the whole course was taught or not as that was my first and last lecture as well. Anyway, here are the topics.
2) Quran-e-karim ki tafseer kay usooL
3) Sura'h Luqmaan
4) Sura'h Noor
6) Sihaa-e-sitha aur uss k muta'lqin
7) Jihad fi Sabil-e-Allah aur iss ki farziaaT aur ahmiyyaT
8) Islami Muaa'shi Nizam
9) Sermaya darana Nizam aur Communism ka muwazna
10) Mazahib-e-Alam ka taqabuli jaiza (hinduism, budhism, judaism, christianity and Islam)
11) Seerat-u-Nabbi (may Allah peace be upon Him)
12) Ghuzwaat; Ghuzwa-e-badar, Uhad, Khandaq, Hudaibia-treaty, Fatah-e-Makkah and Khubta-e-Khujjat-ul-widah
13) Hazrat Muhammad (peace be upon Him) as a Human Being.
And we have a combine paper of Pakistan Studies so heres P-S ...
1) Qiyam-e-Pakistan k baad Pakistan ko derpaish ibditai Mushkilaat. :)
2) Arz-e-Pakistan, geography, resources, education, labour, Industries.
3) Evolution history of constitutions and Islamic quotes in the Constitution 1956,62 and 73.
4) Pakistan's Relations with KSA, Turkey, IRAN.
5) Islaic Conference, Islamic bank, Raabta-e-Islami
6) Future of Muslims in Pakistan and their destination.
I have no idea about any specific book but waseem photocopier, MBQ etc zindabad. You are most welcome to ask me, to arrange a set of notes, on your next visit.