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I've looked at them but seems like they all come with a HUGE penalty. Which of these laws do you recommend for a happy medium? Not lose too much but still gain some manpower?
Germany starts with Limited Conscription, so don't even think about touching the Conscription Laws until war time if you want your divisions. You don't have to worry about manpower until the war, which is why "Low Manpower" shouldn't concern you in 1939. However, once war really kicks off (i.e. Around the Maginot) your number one priority is switching to Extended Conscription. As Germany, this doubles the recruitable population and puts you in the millions at the cost of training time.
By the start of the war, you should have enough divisions if not more than you need. This +10% training time will cost you about half a month addition in time to training for your divisions that you're building. Trading a few divisions for a million if not more men is a beneficial sacrifice in war. You should generally avoid All Adults Serve, and resort to Service By Requirement if you're under 50,000 men.
Your number two priority is maintaining casualties. If you lose over 10k men to non-Major invasions (such as wars against Scandinavia, Poland, or Czechoslovakia) you're doing it wrong. Don't use infantry for attacking in unfavorable terrain like Mountains or Rivers. This will increase your casualties two-fold. As Germany, you need to build some armored divisions, they'll be your breakthrough units, not the Infantry. However, Infantry are best for attacking Cities, where you don't want to send tanks.
If you want to see your 2 million manpower pool dip to Low Manpower by 1940, go fight in the Sahara Desert and get an idea of how bad it is to use Infantry in unfavorable terrain.
That's just the end ones. You should gradually increase it according to need. Through that you should have more than enough divisions by the time the training time penalty kicks in anyway.
Though on another note, you can get a certain (albeit generally miniscule) amount of manpower from territories you annex or occupy rather than conquer. And puppets can give you extra troops. But in general that is secondary to managing the conscription laws and how you spend your manpower and units.