I'm just getting started with the Babyface and my brain is stuck on this one.

I have a Yamaha RX-V671 Receiver hooked up to my PC via HDMI. I have the BabyFace hooked up to my PC via USB 2.0. - I have my Ensoniq  ASR 10 hooked up to my Babyface via MIDI. Sonar X1 is recording what I'm playing (vst softsyth) but I can only hear what I'm playing through the Babyface Headphone port. So what I thought I would do is OPTICAL Out of Babyface to OPTICAL In of the receiver & bypass the PC all together. (I did switch the input on the receiver to the correct input channel) Should this be working? or Should I buy the XLR to RCA and go out of babyface into back of receiver instead of SPDIF? Or am I missing something all together and should be able to hear via the PC and I'm just not routing the output properly? Someone please help me unscramble my brain so I can move onto my audio drop out & latency issues.......Thank you in advance.