As I mentioned in the previous post, we are going to write a custom command that transforms search results into xml. Something like :
        SearchResults::iterator it;
        for (it = results.begin(); it != results.end(); ++it) {
            SearchResult r = **it;
            _output.append("<SearchResult>");
            std::set<Str> allFields;
            results.getAllKeys(allFields);
            for (std::set<Str>::const_iterator sit = allFields.begin(); sit !=
                allFields.end(); ++sit) {
               sr_index_t index = results.getIndex(*sit);
                // check all xml tags are constructed without whitespaces
                if (r.exists(index)){
                    _output.append("<" + (*sit).trim() + ">");
                    _output.append(r.getValue(index));
                    _output.append("</" + (*sit).trim() + ">");                   
                }      
            }      
            _output.append("</SearchResult>");
        }

but Splunk already has xpath.py that makes event value valid xml i.e it makes <data>%s<data> where the innerxml is the value corresponding to _raw in the event. This is different from above.
There are data-structure to xml python recipes on the web such as Recipe #577268 here.

There's also another way described in the Splunk sdk as follows:
To use the reader, instantiate :class:`ResultsReader` on a search result stream
as follows:::

    reader = ResultsReader(result_stream)
    for item in reader:
        print(item)

We try to do it this way :
rrajamani-mbp15r:splunkb rrajamani$ cat etc/system/local/commands.conf
[smplcmd]
filename = smplcmd.py
streaming = true
local = true
retainsevents = true
overrides_timeorder = false
supports_rawargs = true

# untested
#!/usr/bin/python
import splunk.Intersplunk as si 
import time
if __name__ == '__main__':
    try:
        keywords,options = si.getKeywordsAndOptions()
        results,dummyresults,settings = si.getOrganizedResults()
        myxml = "<searchResults>"
        fields = ["host", "source", "sourcetype", "_raw", "_time"]
        outfield = options.get('outfield', 'xml')
        for result in results:
            element = "<searchResult>"
            for i in fields:
                field = options.get('field', str(i))
                 val = result.get(field, None)
                 if val != None:
                    element += "<" + str(field).strip() + ">" + str(val) + "</" + str(field).strip() + ">"
            element += "/<searchResult>"
            myxml += element
        myxml += "</searchResults>"
         result[outfield] = myxml
        si.outputResults(results)
    except Exception, e:
        import traceback
        stack =  traceback.format_exc()
        si.generateErrorResults("Error '%s'. %s" % (e, stack))