Well, even though there are no answers, I could find a way to get done what I wanted, though it involves MATLAB much less than I thought it could/would. I'll share what I did:
- Use a software like VB-Cable to capture the OS output. This is the part I needed the most help with, though I want to know how can I implement such a thing. However, I believe this may not be tackled the best through MATLAB.
- Using this captured signal, which is converted to a virtual recording input, one can use a software such as VSThost to simply load a VST plug-in and feed the incoming signal to it, and then redirecting its output to your hardware output. There you can put just about any signal processor you modelled with MATLAB as long as you find a way to compile it as a VST plugin, which is also something I'm not familiar to and would love to learn.
Anyways folks, should you find doing it interesting for some reason, this is a short way of making it happening. If you can give me some advice on how to implement/study about these parts I commented that can be written in MATLAB. feel more than welcome to weigh in.