With XSLT 2.0 you can certainly easily create a temporary result and process it further. You only need to be careful that you don't end up with infinite processing, for instance by using different modes for each processing step.
With XSLT 1.0 you would need to use an extension function like exsl:node-set to convert a temporary result in the form of a result tree fragment into a node-set to process it further. Again using modes to distinguish between processing steps makes sense.
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Martin Honnen
Microsoft MVP (XML, Data Platform Development) 2005/04 - 2013/03
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