A method and system for evaluating the condition of a laminated core of an electric machine, and including a first yoke wound with a first winding and having a first pair of arms spanning between a first pair of teeth of the laminated core, and a second yoke wound with a second winding and having a second pair of arms spanning between a second pair of teeth. A power supply provides power to an electrical circuit defined by one of the first and second windings to produce a magnetic flux in the yoke corresponding to the one of the first and second windings and defining an excitation yoke. A monitoring module provides a measurement of a characteristic of an electrical circuit defined by the other one of the first and second windings to identify a fault corresponding to an eddy current between individual laminations in the laminated core.