is recursion the best way to solve this?

I have been trying to write an xsl transfor for
converting the following src xml to dest xml. No
success yet, wondering if anyone of you have faced
similar problem, appreciate if you could share any
ideas. The problem is how to wrap the OuterTag over
the InnerTag and the OuterTag can be nested.

thnx in advance
Anil 

src.xml
-------
<Object>
        <HeaderTag>
        </HeaderTag>
        <Object>
                <OuterTag>
                </OuterTag>
                <Object>
                        <InnerTag>
                        </InnerTag>
                </Object>
        </Object>
        <Object>
                <InnerTag>
                </InnerTag>
        </Object>
        <Object>
                <OuterTag>
                </OuterTag>
                <Object>
                        <OuterTag>                      
                        </OuterTag>
                        <Object>
                                <InnerTag>
                                </InnerTag>
                        </Object>                       
                </Object>
                <Object>
                        <InnerTag>
                        </InnerTag>
                </Object>               
        </Object>       
</Object>


dest.xml
--------

<Root>
        <HeaderTag>
        </HeaderTag>
        <OuterTag>
                <InnerTag>
                </InnerTag>
        </Outertag>
        <InnerTag>
        </InnerTag>
        <OuterTag>
                <OuterTag>
                        <InnerTag>
                        </InnerTag>
                </OuterTag>
                <InnerTag>
                </InnerTag>
        </OuterTag >    
</Root>


                
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