"I want to stepdown 300Vac 50hz to 5v(peak)", 5V peak is 3.5V RMS. 220 to 12 V is not a good place to start from. Ignoring any transformer problems, you would get 300/250 X 12 = 14.4 V when you need 3.5, so you will have 4 times as many volts as required!!! If the 3.5V is going to feed a FIXED load (er, LED perhaps?) then a simple series resistor to drop the voltage from 300 to 75V would work but it could dissipate a lot of heat. If the load is DC, then feed it via a stabilizer, but do include a series resistor to limit the input voltage at maximum current draw to 220V. Use only 90% of the transformers power rating and the stabilizer will have a lot of work to do. DO NOT use a series capacitor to drop the voltage, you will get into all sorts of resonant problems, unless you like problem solving!
Frank