Spectroscopic measurements were performed by observing the plasma inside the kerf during cutting of stainless steel using direct current electric arc. Experiments were carried out on the plasma torch operated with the plasma gas composed of the vaporized mixture of water and ethanol; arc current was 60 A and cutting speed 30 cm/min. Emission spectral lines of neutral iron were used to experimental evaluation of the temperature of plasma in the kerf and close under the cut plate. Complicated nature of the plasma inside the kerf, including presence of metallic vapours and departures from equilibrium, was taken into account. Hence relatively reliable results were obtained, from which it was possible to get insight into the energy balance and cutting performance of the torch. Temperature of the plasma in the kerf was substantially lower than at the nozzle exit of the torch; however the temperature drop along the kerf was small.