Max,
If you are running your engine on steam and it is exhausting to atmosphere, the only problem is mess and waste.
If you are recovering the condensate back to the boiler then any oil in the feed water is to be avoided.
IMHO there is a great deal of unnecessary concern over steam cylinder lubrication in engines which use saturated steam. The water condensed in the cylinder will provide adequate lubrication of cast iron rings, liners and valves. It is only where true superheat provides a dry gas to the cylinder that a lubricating oil is vital. For me the proof of this pudding is a steam tug with a triple expansion condensing engine, which has run for over 60 years without oil lubrication of the cylinders, at piston speeds of some 600ft/min. The LP cylinder is 42" diameter and the LP valve weighs in at around 1/2 ton.
Best Regards
Bob