How long had the machine been on when steam started coming out of the group? Pavoni's are notorious for overheating. I can only get 2-3 shots out of mine before I have to call it quits. If the water is flash-boiling as soon as the machine gets up to temperature after turning in on, however, an adjustment to the pressurestat might be in order. It's a fairly simple thing to adjust.
A concentration of commercial backflush chemical and hot water would probably be able to get the milk stains off of the steam wand. You can get the chemical (Puro Caff is my favorite) from Espresso Parts or Stefano's.



