If you can turn the engine with the power steering pulley, the engine is not seized. I use the pulley to turn mine, and it does not seem to be tightening the pulley nut. I only turn it clockwise; some say it's not good to go the other way; some say it's OK either way.
Don't go wild adding lubricants to the cylinders; too much of a non-compressible fluid could cause a problem when cranking, unless you still have the glow plugs out.

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1980 300 TD

1997 Dodge Pickup/Cummins 5.9 12-valve