Whenever I do exercises that are speech level, my tone as I lighten up and thin out becomes slightly breathy [Its not disconnected falsetto, i feel theres cord closure, and I can connect]. I want to ask if this is a normal thing to experience as the way i understand it compression needs time to develop and initially the cords may be letting extra air out. I do singing lessons with a teacher here that is considered the best of the area, but I'm really disappointed, almost 2 years with him and I can't even call myself a singer to my standards [I set really high goals]. Either way he always makes me belt the exercises with exaggerated vowel shapes that sometimes feel very uncomfortable, and my larynx shoots up and down. He says this should balance out. I recently started doing exercises while thinning out on the side, but as I said my tone is slightly breathy. Is this normal?

It's hard to say without hearing git. It could be a matter of perception. You won't hear yourself the same way we would. Sometimes my students think their voice sounds a certain way when it's actually not. If you feel discomfort, that is certainly a sign that you are doing wrong. If you feel your larynx pulling forward then you have you're answer. One of the best advice I have ever heard is: If you feel your voice, you're doing something wrong. Try to relax and realign yourself. YO shouldn't feel like you have to Belt to reach high notes unless you're pulling chest.