This is the 332nd most frequent Dutch word.
steeg
A narrow alley or lane.
Here, 'steeg' refers to an alley or narrow street, often between buildings.
De steeg tussen de huizen was smal en donker.
The alley between the houses was narrow and dark.
In this context, 'steeg' is the past tense of the verb 'stijgen', meaning to rise or ascend.
Hij steeg op tot een hoger niveau in zijn werk.
He rose to a higher level in his work.
Again, 'stegen' (plural of 'steeg') is used to refer to narrow streets or alleys in an urban setting.