This is a fact that you cannot save any YouTube video on your iPad nor can you watch it offline as this option is not available by default on your iPad. But now there is a software ‘ YourTube HD’ on Cydia store that allows you to not only save the video but also view of offline or whenever you want to watch it. You can save as many videos as you want with your YourTube HD application. This application costs you only $2 and available to be downloaded at Cydia store.
Before you download new application Yourtube HD on your ipad, keep one thing in mind that it will only work on jailbroken iPad so if your iPad is not jailbroken yet then you need to do it first. You can easily jailbreak your iPhone for running Yourtube HD by running iOS 3.2 on your iPad.