A combination of the words Nigga and Dawg. One of which is acceptable for white people to call each other as a term of endearment. The other is not!!!! Hence the combo term that is acceptable for white people.
Slang for noggin or ones head. NAWG is used as a nickname for someone that has a big( usually bald) head. A bald fat headed motherfucker you work with could be endearingly nicknamed NAWG.
You know what a PAWG is right? A phat-ass white girl? A NAWG is a normal-ass white girl. It can refer to her ass or just how she's just "there" and white. Nothing special, not too basic, not to whatever. Often used in comparison to other white girls who are NOT normal.