Here's an example that you can port to your code:

use Expect;
$exp = new Expect;
$exp->log_stdout(0);
$exp->log_file(\&formatoutput);
$exp->spawn("/bin/sh");
$exp->send("/bin/cat /etc/passwd\n");
$exp->soft_close();

sub formatoutput {
    my $input = shift;

    # format however you'd like
    # e.g. $input =~ s/\$//g;
    # That will get rid of the $ output and leave you with
    # only data. You will also need to get rid of the
    # commands as they too will be passed to this function.
    # By that I mean /bin/cat /etc/passwd
    # You can do all types of good stuff for additional
    # formatting such as formline or format STDOUT_TOP =

    print STDOUT "\n\n$input\n\n";

    # or if you used formline print STDOUT "$^A", etc.
    # but I'll leave the particulars to you.

    return;
}
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HTH,
Chris

Update:changed $output to $input in the print STDOUT statement...