Of course you can save Windows PowerShell output in XML format; what else would you use the Export-Clixml cmdlet for? This simple command uses the Get-Process cmdlet to retrieve information about all the processes running on the computer. That information is then piped to the Export-Clixml cmdlet, which in turn saves the data as an XML file named C:\Scripts\Test.xml:
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Get-Process | Export-Clixml c:\scripts\test.xml |