Well, Glass Mann, I know the real steam guys in here, won't want to reply to this, simply because steam can be one Dangerous item! BUT, I know where you are coming from.
2cfm @20psi not a lot really, BUT safety would be my first concern, so a pressure "pop off" would be first, BUT make sure that it dumps to some form of container (vented to air) that can hold the entire contents of your "generator" because if it goes, count on everything getting spewed... Second thing, how would you extract the heat to boil the water? A small thick plate cold steel container in the heat circuit? (NOTE: this could be a potential "bomb" if not designed be an engineer!!) The pressure release would have to sit some where in the circuit, and then feed water automated, to replenish the whole thing. I don't know, sounds really complex, to save a few dollars on elec. for the compressor.... OK, I can see a manual replenish thing (hand valve), BUT, what if it runs dry?? Would your oil supply, un-atomized become a problem???? Would this cause a run away fire at the furnace end????? What about using the original compressed air as a backup? Say, a pair of regulators (remember the one has to work in steam) and if the steam quits, the compressed air takes over...
The more I speak about this, the more I realize I better quit, it's getting way to complex....
G.