Ok after your guys tips about my use of canola oil I decided to try to apply the light clay coating technique I read in Bladesmithing with Murray Carter: Modern Application of Traditional Techniques (a good book for any of my fellow apprentices) and it seems to prevent a steam jacket from forming. I'm using a mix of water thinned terracotta, Fe3O4, two mules soap and sugar the last ingredient was added is from the crazy idea that sugar is sticky when caramelized and would help the terracotta stick to the blade better. once this mix runs out i may not add it to the next batch I mix.

So I am wondering if this is actually working or just in my head as it seems to work. The only thing I do differently then what Murray describes in the book is that I apply my clay coat with a paintbrush, as I mixed it in a mason jar and as such the longer blades dont fit into the jar...Ok I admit that I get a bit of a kick out of coating my blades this way.