Firstly, the steam you see escaping (as previously stated) is blowby venting from the crankcase, a certain amount of this is inevitable, too much is a sign that your cylinder bores and/or rings are worn. Unless you have oil consumption or low power, it probably isn't problematic.
Secondly, a blinking oil light is not a good thing, DO NOT ignore it. You say specifically that it blinks at low rpms, I translate this to mean that it doesn't do it at higher rpms, if I'm incorrect then this may not apply. The blinking light is trying to tell you the oil pressure is momentarily falling below the "safe" zone at which point the light is triggered, usually the preload is either 5 or 8 PSI, very little in either case. There are a myriad of possible causes for low oil pressure, a plugged oil sump screen, weak oil pump (pitted/worn rotors), worn rod/main bearings, or oil dilution from fuel, or engine coolant, all common causes. It is also very possible the sender that tells the Oil light to illuminate is malfunctioning, but banking on this could damage your engine if oil pressure is in fact low. The bottom line is, driving it with the oil light on is a gamble, the wise thing to do is have it looked at by a professional, soon!