Mint oils are steam distilled. You are kind of doing that in principle with the plastic bag, but distillation is a controlled process where the steam passes through a biosolid and is then condensed and collected. You can make a home steam distiller with some equipment from a lab supply house for not a whole lot of money if this is something you want to do routinely.
You can make a weaker version at home -- peppermint extract -- by soaking the leaves in a 50% ethanol alcohol solution, like cheap 100 proof vodka, for about 4 weeks in a cool, dark spot. Use a sterile glass container, like a mason jar that's been boiled. Use about a 1:3 ratio of fresh leaves to alcohol and shake up the mixture every few days.
As to whether you can salvage what you have... I supposed you could sterilize the liquid by boiling, but I personally wouldn't bother. You don't have essential oil there so much as you have mint bong water.