Transforming xml string within xml

Hi All,
I have encoded xml as a node value within my xml.
Is there a way that I can decode this string and transform it as well?
Do I need to use node-set()?
Can someone please point me in the right direction?
Thanks!

HTML Code:

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<data>
  <item>
    <ListId>52089F3E-C1C6-4308-BAE3-16D095F53E6A</ListId>
    <WebId>C6D7D2F3-F4C6-43F0-8972-147BE09B249E</WebId>
    <ID>9</ID>
    <Title>Next Steps</Title>
    <CDDescription>
      &lt;?xml version="1.0" encoding="utf-8"?&gt;
      &lt;nextsteps&gt;
      &lt;site url="/projection-solutions"&gt;
      &lt;step&gt;
      &lt;text&gt;Request a Sales Contact&lt;/text&gt;
      &lt;alt&gt;Request a Sales Contact&lt;/alt&gt;
      &lt;href&gt;/en-ca/about-christie/contact-us/sales-inquiry-contact/&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Learn What's New&lt;/text&gt;
      &lt;alt&gt;Learn What's New&lt;/alt&gt;
      &lt;href&gt;/en-ca/visual-solutions/new-projectors/pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Download a Whitepaper&lt;/text&gt;
      &lt;alt&gt;Download a Whitepaper&lt;/alt&gt;
      &lt;href&gt;/en-ca/display-technology/projection-technology-whitepapers/Pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Download a Case Study&lt;/text&gt;
      &lt;alt&gt;Download a Case Study&lt;/alt&gt;
      &lt;href&gt;/en-ca/visual-solutions-case-studies/projector-installations/pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;/site&gt;
      &lt;site url="/visual-solutions"&gt;
      &lt;step&gt;
      &lt;text&gt;Request a Sales Contact&lt;/text&gt;
      &lt;alt&gt;Request a Sales Contact&lt;/alt&gt;
      &lt;href&gt;/en-ca/about-christie/contact-us/sales-inquiry-contact/&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Learn What's New&lt;/text&gt;
      &lt;alt&gt;Learn What's New&lt;/alt&gt;
      &lt;href&gt;/en-ca/visual-solutions/new-projectors/pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Download a Whitepaper&lt;/text&gt;
      &lt;alt&gt;Download a Whitepaper&lt;/alt&gt;
      &lt;href&gt;/en-ca/display-technology/projection-technology-whitepapers/Pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;step&gt;
      &lt;text&gt;Download a Case Study&lt;/text&gt;
      &lt;alt&gt;Download a Case Study&lt;/alt&gt;
      &lt;href&gt;/en-ca/visual-solutions-case-studies/projector-installations/pages/default.aspx&lt;/href&gt;
      &lt;/step&gt;
      &lt;/site&gt;
</CDDescription>
  </item>
  </data>

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