0.200” step over is a lot for dry grinding softer steel. I finish with a 0.01” step over. Sounds like a new diamond is in order too. Listen to the wheel while grinding, the sound can tell you about the dressing. experiment with speed too.
Recently added flood coolant to my grinder, what a huge improvement. If the machine can handle it it’s a great, if flood coolant isn’t an option, try a mister. See if you can find a copy of Norton’s grinding booklet. Great info. just my 2Cents