An engineer working with a steam engine would be very unhappy to find himself working with anything less than pure, gaseous water. That's why steam engines have things like steam strainers to make certain no liquid gets into the steam main, which is called the "dry pipe" for this reason. That's also why steam engines contain superheater tubes, whose purpose is to raise the pressure of the steam well above the boiling point of water (and recapturing what would otherwise have been waste heat from the firebox in the process) to increase its pressure, and, thus, the mechanical potential energy it contains which can then be released as mechanical kinetic energy against the piston head or turbine blades, depending on the type of engine you're powering.
"All aboard!" or "All ashore that's going ashore!", depending on where your engine is mounted.