Step 2 tells you to use a suitable converter so it doesn't answer the problem.
I'm not saying you can't build one, what I'm saying is that by the time you have built a USB host, written all the driver software for it (almost certainly without specifications to work to) then built a DAC and frame buffer with dual-ported RAM, a synchronizing system and composite video frame generator and a control system to coordinate all of this, it would cost maybe 100x more than buying a cheap security camera. At no place in a web cam is there a composite signal to start from so you can't 'tap' into it, they are not composite cameras with a USB interface, the video is digital throughout.
Brian.