Welcome to the forum.
Premiere has some problems with USB connected mics. Some work, but some do not. I do not recall any posts specific to the Blue Icicle XLR to USB setups, in either the PrE, or PrPro Forums. I have not seen mention of it in the Audition Forum, but spend a lot less time there, so you might do a Search of that forum. Though there are differences between Premiere and Audition, there are some similarities, as well.
As a test, I would borrow a mic that plugs directly into the sound card/mic input, and see if PrE sees that.
Premiere Elements 11 will work just fine with USB microphones as long as you have them properly configured:
In Windows/Sound, make sure that the USB mike is selected as a source.
On the Premiere Elements Narration panel, make sure the microphone is selected in the Hardware Settings (the little microphone icon in the upper right corner of the panel).