This study provides a recursive parametric identification scheme for a liquid-saturated steam heat exchanger system. The recursive identification scheme uses block-structured Wiener and Hammerstein models as model structure and recursive least squares estimation scheme as the parameter estimation method. The estimated block-oriented model provides higher accuracy of estimation than linear models provided in the literature. From the simulation results, it is observed that the Wiener model can provide 88% goodness-of-FIT, whereas Hammerstein model can provide 96% goodness-of-FIT using the said technique.