What you need
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When there is water leakage from the steam valve, there are 2 sources, external and internal. External leaks are a matter of replacing bushings and shown eslewhere. This guide shows how to deal with internal leakage. First, descale the machine with a commercial product, like Dezcal. Unplug the machine from the power source then follow the steps:
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Remove the six screws holding down the cover. Note that the top screws have fine threads, while the four lower screws have coarse threads. Keep this in mind for later assembly.
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Note where the steam valve knob connects to the valve assemble, at the top is a small hex nut. Use the 2mm hex wrench to loosen the nut by turning it counter clockwise, about 1/4 turn. Hold on to the wrench, keeping the steam knob shaft in the upright position.
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Now, while bracing the hex wrench, turn the steam valve knob slightly in a clockwise direction, perhaps 1/8th of a turn or less. This is compressing the seat of the steam valve plunger to close off the water leak when the machine is on.
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Replace the lid, making sure the steel lip at the front is in its slot, and that the black plastic bushing is in place at the back of the cover. Replace two of the six screws, to save time in case you have to repeat the process.
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Load and pour an espresso shot, and check the steam wand for leaks. If the wand is still leaking, go through the steps a second time.
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If the steam wand is still leaking after a second try, then the steam valve plunger needs to be replaced. This is part number 8 on the schematic. Overhaul kits can be acquired from sources like espressocare.com. You can follow the tear down instructions on this site, or some of the video sources on youtube.com.
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