Steam does have some minor health benefits, for the sinuses and for the skin. As far as curing a cold goes, it could contribute somewhat to clearing a blocked nose. This is done by filling a bowl up with boiling water and hanging your head over it, with a towel over your head so as to catch as much steam as possible. You should try breathing through your nose while you are doing this, and it should melt the mucus so the extent that it can be blown out.
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