UR22 set up problems

I’m kind of a noob with audio interfaces so bear with me haha. So I connected everything and have been using the cubase software that was included. I am getting sound from my guitar out of the tiny amp i’m using, and out of the headphones, but nothing registers as being recorded. This is my current configuration:
UR22 driver and firmware downloaded
Input 2: guitar plugged in and Hi Z button pushed in
Headphones in UR22 headphone jack
Line output 2: to orange micro crush amp
Usb to Windows laptop

Cubase audio input says “not connected”
Output says connected through UR22

It works through the generic ASIO driver, but seems to use the laptop microphone only and sounds like trash.
Hopefully I just overlooked some minor detail.
Any help would be greatly appreciated