(adjective) A recently (2010) evolved term that is derived from the 1960s-era slang-term "groovy" and the delicious breakfast food "waffles." It is a distant relative of the phrase "cool beans," loosely connected only in that they join together a slang term meaning "good" with a food item.
It has multiple possible uses, though the most common is in the situation that something is both offbeat and awesome, hence deserving an adjective that is equally offbeat and awesome.
Question: Hey did you see that girl dancing around with the flaming hula-hoop?
Response: Yeah, that was totally groovy waffles.