1. You can set up an elemental or nodal expression, dividing the resulting Darcy velocity by the porosity.
2. FEFLOW does not use any dry cells. In the dry layers in phreatic mode, the hydraulic conductivity is reduced linearly with saturation of the element, but the element stays part of the simulation. Thus recharge is still also added on top of the model (into slice 1). This will lead to a vertical gradient in hydraulic head, as recharge has to be routed from the model top to the water level. The phreatic approch is a generally very stable solution for regional model with a predominantly horizontal groundwater flow. In more local situations, or situations with vertical flow dominating, I'd recommend to rather use a variably saturated/unsaturated approach applying Richards' equation.