I don't think there is any information yet. This is probably intentional on OWI's behalf as they want to make Stranger mysterious and that will be hurt the more we know about the Steefs.
My vibe is that they reproduce sexually. This is only based on the fact that Steefs look quite mammalian but I could be wrong.
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Spending as long as I do here, it's easy to forget that Oddworld has actual fans.
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