No, XAML does not compile into IL, that gets done at runtime. The best way to think about it is as a way to compose an application from components.
For the majority of things you can replicate in C# what you do in XAML, however there is a small number of things that is available in XAML that's not in C# and vice versa. Charles Petzold at some point said that ostensibly, XAML looks like XML, but it's actually not, it's a language of its own.
For example this XAML code:
<Grid>
<TextBlock Text="Something" />
</Grid>
Is equivalent to the following C# code. This will get done in C# at runtime and short of setting a breakpoint in a particular component's constructor, there isn't much you can do to figure out what executes at runtime.
var grid = new Grid();
grid.Children.Add(new TextBlock{Text = "Something"});
I am sure there is a solution to your problem, but not as an answer to this particular question. Can you give more details on your problem and we can help you understanding it.