The Master Recorder will record Torq's Master Output when using Internal Mixer Mode.  When using External Mixer Mode, there is no Master Output because each deck is assigned a separate output.  All of the mixing is done on your external DJ mixer, therefore there is nothing for Torq to record.

See how users are recording in External Mixer Mode.

For instructions on using the Master Recorder with Internal Mixer Mode, see Page 61 of the Torq User Guide.