Background-oriented schlieren imaging is a recently proposed method for measuring projections of ultrasound fields. The method is based on observing deflection of light in a heterogeneous refractive index field that is induced by ultrasound via an acousto-optic effect. The deflection of light manifests as apparent perturbations in an imaged target, forming a potential flow estimation problem. In this work, the potential flow approach is formulated as a nonlinear regularized least-squares approach to alleviate limitations of approaches that linearize the problem. The nonlinear approach is shown to outperform the linear one when estimating projections of medically relevant ultrasound fields.