What is Saturated Steam ?

When water is heated to the boiling point at a given pressure, its temperature rises.  However, once the boiling point is reached, the temperature stops to rise.  The energy which is fed to the water is used to convert the water to vapour. 

The heat which is given to the water converts it into the vapour state.  This is known as the latent heat of vaporization.  The steam produced in this stage contains water droplets.  The temperature does not rise till all the water has been converted into steam. 

The steam which contains suspended droplets of water is called saturated Steam.
Saturated Steam is used widely in the industry for drying, heating.  It is also used in cooking as it has a high energy transfer coefficient. 

If the steam is heated further, all the water is converted into steam.  The steam, at this stage, is called superheated steam.