steel bike stem rusted to aluminum bike

This is a bit involved but works almost all the time. The assumption is that the wedge of the quill is rusted/corroded to the steer tube. In your case, I suspect your quill is also corroded in. This will make it more difficult to remove.

Remove the bolt, loosen the crown nut and slide it up as far as possible. Loosen the race and slide it up as far as possible. Remove the front wheel. Turn the bike upside down. It will be necessary to carefully support the bike on the frame near the head tube and not on the quill/handlebars. Be careful not to damage the frame during the following process. Use a drift at least 1/4" in diameter (or a similar bolt) that's long enough to reach the bottom of the wedge (see MGTS's diagram) from the hole a the bottom of the fork. Use a sharpie marker or tape on the drift/bolt to get a starting point. Give the drift a really good whack to try to break it loose from the inside of the steer tube. Since the bottom of the wedge is flat, all the force you apply drives it directly. If it moves at all, see if the quill can be twisted. If it can be twisted, work it until it can be pulled up from the steer tube. If not, repeat until it works.

PS - I had a quill that was corroded in. The wedge was loosened but the quill was still stuck. I eventually got it to move a little by holding the wheel and twisting the handlebars. Working it back and forth made it move a tiny bit more each cycle. It took nearly an hour but it did eventually come out. The way to avoid this again is to remove and grease the quill and wedge every year.

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