From the text of the question I get the impression that a string result is expected, as opposed to an HTML-formatted result.
If this is so, the simplest way to achieve this is to process the XML document with the identity transformation and with an <xsl:output indent="yes"/> instruction:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output omit-xml-declaration="yes" indent="yes"/>
<xsl:template match="node()|@*">
<xsl:copy>
<xsl:apply-templates select="node()|@*"/>
</xsl:copy>
</xsl:template>
</xsl:stylesheet>
When applying this transformation on the provided XML document:
<root><node/></root>
most XSLT processors (.NET XslCompiledTransform, Saxon 6.5.4 and Saxon 9.0.0.2, AltovaXML) produce the wanted result:
<root> <node /> </root>