Today, AH-kwa is the usual American pronunciation, with ACK-wa a less common variant, according to the online Merriam-Webster Unabridged. A British dictionary, Lexico (formerly Oxford Dictionaries Online), says the only British pronunciation is ACK-wa.
In American English, the 't' in words like 'water,' 'better,' and 'butter' often changes to a softer, almost 'd' sound, making it sound more like 'wader' or 'batter' instead. This is called a 'flap T,' and it's a huge part of what gives the American accent it's differentiation in pronunciation.
Pronunciation. There are multiple pronunciations in current English use. More American dictionaries favour the pronunciation /ˈfʌnd͡ʒaɪ/ or /ˈfʌŋɡaɪ/, while more British dictionaries favour the pronunciation /ˈfʌŋɡiː/ or /ˈfʌnd͡ʒiː/. However, all four pronunciations are in use in both countries.
A British dictionary, Lexico (formerly Oxford Dictionaries Online), says the only British pronunciation is ACK-wa. (The first “a” is pronounced as “uh” in both American and British English when it's unstressed in such terms as “aquarium,” “aquatic,” and “Aquarius.”)
The Midwestern accent is also rhotic, meaning that for words ending in -r like “water,” that -r sound is properly pronounced. Despite this seeming like (and being) normal and correct English, it can actually sound quite strange to someone accustomed to hearing a typical coastal, or even more so a British, dropped -r.
With a slightly less literal meaning, the term “Restroom” gained popularity in early twentieth century America, where the Restroom was a space to “have a rest” and “refresh”.
Crapper. A rather more vulgar word for toilet is 'crapper'. First appearing in 1932, crapper became a popular alternative word for toilet thanks to the Thomas Crapper & Co Ltd company that manufactured toilets.
Both AL‑jee (British) and AL‑jay (American) are accepted; use the one that fits your audience. Is the “g” always soft? Yes. The <em>g</em> in algae is pronounced like the j in “jelly.”