In 1935 Steinbauer again relocated to Berlin, where he took a small job as artistic research assistant (') in the National Institute for Music Research. He worked in the museum of old instruments which was part of the institute. And he composed. Early in 1938 Austria was merged into an enlarged Nazi German state and the regional Gauleiter (governor), Odilo Globocnik, gave orders for the establishment of a new music academy for Vienna, to be divided into two sections. One would focus on members of the Hitler Youth organisation and be headed up by Gottfried Preinfalk, and a second for German adult education under the auspices of the Nazi Strength Through Joy (') leisure time and recreation operation. Steinbauer, who now moved back to Vienna, was given the headship of the overall organisation. The academy was quickly built and reportedly functioned to a high standard. In 1939 he also set up the Working Association for Old Music (""). In 1945 war ended and the Nazis fell from power. Steinbauer was dismissed and devoted himself primarily to composition and teaching. He also found time to invent a new type of violin based instrument, the so-called "Viellen", patented in 1951 and said to be particularly suitable for making music in the home.