Break up XML into parts using XSLT 2.0 - xslt

Question

I am given XML as input that I have no control over the structure. I need to break the XML up into parts and process each part separately. Below is a very simplified version of a file that I would process.
I am trying to use the grouping functionality of XSLT 2.0 to break up this XML by using the <breakEle> tag as the part boundaries. The <breakEle> can appear at any level too. Is what I'm trying to do even possible with XSLT 2.0? I have been successful in accomplishing this with XSLT 1.0 using Muenchian grouping but I want to get away from that if we can.
Sample input:
<item class="poem">
<div>
<div>
<p>paragraph 1</p>
<breakEle groupNum="1"/>
</div>
<div>
<p>Paragraph in another div.</p>
</div>
<breakEle groupNum="2"/>
<div>
<div>
<h4>header</h4>
<p>1st line</p>
<p>2nd line</p>
<br/>
<p>3rd line</p>
<p>4th line</p>
<page n="100"/>
<p>5th line</p>
</div>
<breakEle groupNum="3"/>
</div>
</div>
</item>
What I'm trying to work with:
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:xs="http://www.w3.org/2001/XMLSchema"
xmlns:xd="http://www.oxygenxml.com/ns/doc/xsl"
exclude-result-prefixes="xs xd"
version="2.0">
<xsl:template match="/">
<newRoot>
<xsl:copy>
<xsl:for-each-group select="*" group-ending-with="breakEle">
<div num="{#groupNum}">
<xsl:copy-of select="current-group()"/>
</div>
</xsl:for-each-group>
</xsl:copy>
</newRoot>
</xsl:template>
</xsl:stylesheet>
Would like to end up with something like this:
<newRoot>
<div num="1">
<p>paragraph 1</p>
</div>
<div num="2">
<p>Paragraph in another div.</p>
</div>
<div num="3">
<h4>header</h4>
<p>1st line</p>
<p>2nd line</p>
<br/>
<p>3rd line</p>
<p>4th line</p>
<page n="100"/>
<p>5th line</p>
</div>
</newRoot>

Answer 1

The following stylesheet returns the expected result when applied to the given example.
It works under the assumption that each group should only contain leaf elements.
XSLT 2.0
<xsl:stylesheet version="2.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
<xsl:strip-space elements="*"/>
<xsl:template match="/item">
<newRoot>
<xsl:for-each-group select=".//*[not(*)]" group-ending-with="breakEle">
<div num="{current-group()[last()]/#groupNum}">
<xsl:copy-of select="current-group()[not(self::breakEle)]"/>
</div>
</xsl:for-each-group>
</newRoot>
</xsl:template>
</xsl:stylesheet>