The algebra is a nuisance, but the method is straight forward.
The line through (1,2) is m=(sqrt(x)-1)/(x-2)
If you solve that for points A and B (i.e. the intersection with the parabola), you get
yA = (1+a)/2m and yB=(1-a)/2m where a is the discriminant of a quadratic equation such that
a2 = 1-4m(-2m+1)
and yB=(1-a)/2m
The abscissa of the midpoint is .5(1+a2)/4m2
If you differentiate this midpoint with respect to m, you will find a minimum for the abscissa when m=1 and with that slope the distance of the midpoint to the y-axis is 1.5.