Do you have a seized thermostat by any chance?
I highly doubt you will be able to notice if your engine is overheating or not given the temperature of the bonnet. Steam is also a very bad way of confirming your engine is running hot, aside from the obvious..
Try cleaning the engine temperature sensor, for the cluster - this should be located on the driver side coolant passage on the intake, right near the head. Next to it you will find the temp sensor for the ECU. The one you want to clean is a single wire connector.
If that doesn't seem too bad/clean, try removing your thermostat and placing it in 100ÂșC to see if the mechanism opens.