The phenomenon of seeing the shadow of steam is attributed to the refraction of light through varying temperatures of air and steam. Hot air and steam create pockets that bend light differently, resulting in a wavy pattern of shadows on surfaces like walls. This effect occurs because the density of the air changes with temperature, affecting how light travels through it. The visibility of the steam's shadow, despite the steam itself being invisible, highlights the interaction between light and temperature gradients. Understanding this can enhance awareness of optical effects in everyday situations.