We present in situ measurements of a dilute polymer blend in channel flow using an optical flow cell placed at the exit of a twin screw extruder. At weak shear stress, we find mildly deformed ellipsoidal droplets whereas at moderate shear rates we find coexistence between large aspect ratio strings and ellipsoidal droplets. In the regime of low to moderate stress, depth resolved optical microscopy reveals that the deformation is a function of local shear stress. At large shear stress, the droplet breakup is suppressed; mildly deformed droplets at high capillary number are observed, in contrast to the Taylor model. Optical light scattering provides complementary morphological information that is averaged over the channel depth and confirms the optical microscopy. We discuss these results in terms of Taylor theory and normal forces.