The hotter liquid water is, the faster it wants to evaporate. The hotter air is, the more water vapor it can contain.
So washing your hands with hot water will create make water want to evaporate into the warm air right next to the water. But when that water cools down (by mixing with the cooler air all around the room), the water vapor starts to condense back to liquid. These tiny liquid droplets are what we see and call steam. *True* steam, evaporated water or water vapor, is invisible.
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