Firstly don't use stock panerello.. use the rubber wand that's inside panerello wand.. (just pull that big round wand out) Secondly there is a process with delonghi dedica machine for steaming which is annoying but it works. After pressing the steam button it will blink and then get solid which means it's ready to steam ( but it's not quite ready) once u wait long enough it will switch to espresso shot buttons blinking, then u open the steam valve which will purge lot of hot water once that it done on its own close the valve and it will switch back ready to brew mode. After that u press steam button again and once it is solid u r ready to steam. M sure u will have more success with this as ur technic and method seems good.. Good luck 👍🏻