I placed a folded towel on my wood table to iron a shirt and used a steam iron on high, unfortunately when I finished, when I removed the towel the damage was done the color and varnish had faded from my table, I suppose the steam lifted the stain onto the towel... HELP!

I'm guessing that this is more than just a spot on the table top. How much of the surface was damaged? Can you post a photo? Given that the finish was steamed off, you may have left most of the color (stain) in the wood. Without a picture or more detail I would guess that your top would need to be refinished.
Bill

Wait a little while and see what happens. I have put hot pots on towels and after lifting it, the surface of my beautiful wood table was white and looked as if ruined. After completely dry it was no longer there.

A picture would help though:)

Hi, riowolfe!

Yes, an image posted here would help.

One of the things that I do for a living, is that I refinish and touch-up furniture.

Thanks!