I've noticed steam sometimes comes off the bonnet of my Mk3, however only when the bonnet is wet. I would say that something was up with your car tho, as the temp guage shouldn't go above 90, whilst the oil temp on mine typically sits bewteen 80 and 90 - only high speed motorway runs in summer seem to propel it higher, up to 102-104. Still well below the manual's stated tolerance of 145C. Going by that it doesn't sound like you car is in immediate danger of frying itself, however I'd get that manifold checked as Ash mentioned.