@Sunnyman you don’t need loopback if you are using the Steinberg built-in ASIO Driver. The settings in your screenshot should work. Try the following:
- click on the record button on the Wavelab transport.
- in the Record window Method section make sure the Input is set to the Realtek Audio Stereomix bus. Choose the record format and make other settings as appropriate.
- in the Record window click on the Options tab and de-activate ‘Activate Monitoring when opening Record Window’ to avoid any feedback loops.
- in the Record window click on the Pause button to activate Record standby.
- start playback from You Tube.
- in the Record window click on the Pause button a second time to start recording.