get your kyma on
turn on the fill buffer button and then play this bad boy thirty or so seconds of audio. then you select position one and position two. crank that morph knob and spectrally morph between those two frames. theres a couple extra bells and whistles, but overall that's pretty much it. this could be modified to morph between live input no problem, well except the internal structure is an absolute hot mess, and i probably won't clean it up unless someone yells at me.
edit: tried modifying to accomodate live input and found it produced little more than one would expect from crossfading. i can think of possible ways of sneakily getting around this, but this would likely still require pre loaded input. time will tell!
edit: modified names of buttons to be more descriptive to make the process a bit less convoluted. default is now to have the audio always playing, with a button to select midi trigger mode