Interesting question, the toxicity aspect. Dr. Christel Kasselmann, a botanist with years of experience in aquarium plants, does not mention the species
Hygrophila difformis as being toxic, but she does warn that from her own experiments
H. balsamica is very highly toxic to fish when cultivated emersed, though it is safe in submersed cultivation.
This led me to "Google" and I came across more than one article on the medicinal properties of
H. difformis in experiments with terrestrial animals like mice; here's one.
http
/www.ijpcbs.com/files/286-12.pdf
I have never heard or read of
H. difformis being toxic to aquatic residents, though most aquarists probably grow it submersed and acquire it as such. It is a marsh plant, and Kasselmann in her book
Aquarium Plants describes the difference, but again makes no mention of this species being toxic.
To your question on how to change it from emersed to submersed, just grow it submersed. Push the cut end of the stems into the substrate a couple inches or more; a small rock or two may help to hold it down until it establishes, and roots will appear and anchor it. I would be inclined to remove the flowers as they will only rot submersed anyway. As the plant establishes, the new leaves will be the finer submersed form.
Byron.