Interesting design.
Steam, I take it? Are the cylinders oscillating? The large circular bosses carrying what appear to the inlets, from the valve on their pipe, suggest that.
If so it’s not a unique concept but somewhat similar to the Diagonal Oscillating engines of some early paddle-steamers.
It could indeed be the engine for a winch, or more likely capstan, mounted on the deck above it. The difference being that a marine capstan has a vertical axis, and here connected by a reduction-gear whose pinion is illustrated.
The big plate on top may have formed a combined connection between the two machines and the boat’s deck framing. The vertical rod with crude square nut looks more likely something to do with whatever this engine was doing in the cellar.
Note the small, centrally-mounted pump, driven by an eccentric. That could have returned the condensate from this engine’s own condenser, to the main hot-well.
I can’t make out properly what the fitting next to the stop-valve is. It may be a small displacement lubricator but it would seem too small for normal service, so might be some replacement.
The stop-valve there, in the form it is, could only have been an isolator on board, as the main control would need be close to the capstan. Most likely the valve would have been controlled via a spindle on deck, and perhaps that went through the hole occupied by that rod; either on an angle or fitted with universal-joints. Doing that would remove the need for an extra hole through the deck, some distance from the main mountings.
I wonder what it was doing in the cellar? Driving a line-shaft perhaps?