OK…sounds like we’re most of the way there.
From a quick look at the manual for that Xenyx I think this is the procedure.
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Connect your speakers to Control Room Out rather than Main outs (if you haven’t got them this way already)
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On the mixer make sure the USB2 Phones/Control Room is pushed in/selected.
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You should now be able to hear playback of instruments in Cubase and also your Korg playing live…but you can record the Korg without the other playback looping back.
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In Cubase vst connections (F4)/input tab make sure you have a stereo input bus created. Assign this in the right hand column to the Xenyx Ins 1 & 2.
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Create a Stereo audio track and assign the same bas as the input of this track (in the inspector or in the mixer/routing section)
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Arm record for the track, hit the record transport button and go.