copy the result of apply-templates
File: Data.xml
<colors>
<color>
red:
<shade>A</shade>
<shade>B</shade>
<shade>C</shade>
</color>
<color>yellow</color>
<color>
blue:
<shade>F</shade>
<shade>G</shade>
<shade>H</shade>
</color>
</colors>
File: Transform.xslt
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
version="1.0">
<xsl:output method="xml" omit-xml-declaration="yes" indent="yes" />
<xsl:template match="@*|node()">
<xsl:copy>
<xsl:apply-templates select="@*|node()" />
</xsl:copy>
</xsl:template>
</xsl:stylesheet>
Output:
<colors>
<color>
red:
<shade>A</shade>
<shade>B</shade>
<shade>C</shade>
</color>
<color>yellow</color>
<color>
blue:
<shade>F</shade>
<shade>G</shade>
<shade>H</shade>
</color>
</colors>
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