I had the same problem and it was do to the PS pump. It takes intake manifold vacuum to control the amount of PS boost. You could replace the vacuum sensor located at the bottom of the pump or bypass the vacuum sensor and plug the intake ports. I did the bypass method and the smoke is gone. Now I don't need to refill the PS fluid every 2-3 weeks. Steering boost is a little less at idle but isn't noticable after a week or two.
I agree with viper-boy. The problem is likely the air control valve located at the bottom of the power steering pump. You could do as he suggests and bypass it; however, the valve only costs about $70.00 and is available at Toyota dealers. The part number is 17630-16040.
I replaced the valve and replaced both of the hoses that run from the power steering pump to the air intake and to the engine (they were both hardened and rotten). That solved the smoking problem, and I stopped losing power steering fluid.
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