So after spending some time here and there purusing the internet for a way to get my "Show Desktop" icon back into my quicklaunch bar in Windows 7. I finally stumbled upon a short snippet of code that allow you to show the icon in your quicklaunch bar in Windows 7.
 
Solution:
  1. Paste following code in Notepad and save the file with name "Show Desktop.scf"
    [Shell]
    Command=2
    IconFile=explorer.exe,3
    [Taskbar]
    Command=ToggleDesktop
  2. Now you have to copy this new file and paste in "Quick Launch" toolbar. You can do it in 2 ways:
    1. Drag-n-drop the new file to Quick Launch toolbar.
    2. Type "%appdata%\Microsoft\ Internet Explorer\Quick Launch" in RUN dialog box and press Enter. It'll open Quick Launch folder. Paste the file in this folder.
You can also use the shortcut keys of "Win+D" or "Win + M"
 
Hope you found this as usefull as i did.