Technically, you're note supposed to do that, of course. So the workflow isn't an easy one and doesn't guarantee great results.
Some browsers won't even allow you to download video from YouTube. Google, who owns Chrome and YouTube, won't do it at all. But Firefox does have some add-ons available that will rip YouTube videos as mp4s.
Once you've got the Mp4 of the movie, you can add it to a Premiere Elements project -- Then burn a DVD or BluRay from that project.
How you burn a DVD or BluRay depends on which version of the program you have.