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Since the steel is on the outside and hit by the heat first, I think you can get away with it but you have to do it quickly. Unless you can keep the stem cool of course. If the steerer heats enough to expand before the heat has penetrated to stem then I guess it works. Tried it on a seatpost once but it was a no go.
PhilDAS
My case was an aluminium stem in a steel frame. It expands faster, but then it also contracts faster, no? Anyway my LBS got it to work using this method, but I don't have the details.