Should not be a problem with iron, put a bit more oil through it at the end of a run. Aluminium is also a popular choice on traction engines.
When you come to make the new piston leave it a little oversise but cut the groove to finished depth. Drill counterbore and tap. Then without removing from chuck the piston rod can be held in the tailstock drill chuck and the two screwed together which helps keep things in line.
Now hold the piston rod in a collet, split bush of 4-jaw so it runs true and skim teh OD of the piston down to size which will get it as concentric as possible to the rod.