It's a funny puzzle. If you log out you will be put outside, so better to do the quest in one go.
Massive spoilers
To complete the quest you need to direct the steam from the beginning to the end. When you adjust the knobs you adjust the direction of the steam flow, but starting from the wheel closest to the terminal direct the steam down the pipes to the next valve. You can tell where the steam is going by subtle white haze rising from one side.
It bugged for me a couple of times. First time on the steam puzzle, second time with the powered gates you encounter later. Good luck.
#1 tip (Re)check your graphics settings periodically - especially resolution.
I remember having some trouble with this puzzle as well. I don't remember how I solved it but it wasn't as straight forward as I thought it would be. Just keep at it, you should get it eventually, it's not bugged. It's a strange puzzle.