Steam engines no matter how small to the size of the big boy they need a lot of maintenance.
Steam to electric, i would think twice to do it, the horsepower you need for 3kw generator continues is quite a lot.
Also there is a reason that in the old days of steam trains they changed from wood to coal. higher calories thus more power.
Steam is very safe as long as you keep it under 3 bar and dont go near heated(dry) steam 120C or super heated steam 140C.
Just keep 100-110C.
Now what is the steam doing? it powers up a simple piston in a cilinder.
To get steam heat up with whatever you want in a kettle under pressure and force that into a cilinder.
ect ect(yes i am a scale one live steamer modeler also).
I think the best way to go is a combustion engine to power up a generator.
The first diesels run on peanut oil ask Rudolf diesel.
Btw every diesel runs on vegie oil except the commen rail.
Wood is best for simple 1 on 1 heat in a wood stove/burner, cooking will be very slowly.
Talking from my experience, i had a very old(antique) wood furnace, i really loved that thing.
In our second home in Poland, we have a similar cooking thing, but also accept coal, 3 times quicker regarding cooking.
For wood burning (in the Netherlands) its allowed and you can buy even wood stoves as small as 2kw.
If you can weld (i thought, you could) why not make a double walled wood stove and run water against it to distribute thru your whole house?
A extra radiator is connected in no time with a extra pump.
I'm currently working on a fuel storage area (propane, k1-keresone, gasoline, butane) in the yard with non-flammable containers and away from anything that can burn
What no ammo or tnt storage?!?!?!
I think a concrete wall of 2.5 inch thick will do everything you want.
Or a wooden shed with plaster, drywall, promat or rockwool (hard press not the soft one) to the sides.
Good luck with rebuilding all, and seeing your process, is very good to see.