In large bowl, combine sweetened condensed milk and water. Add pudding mix; beat until well blended. Chill 5 minutes.

Fold in whipped cream. Spoon 1 cup pudding mixture into 2 1/2-quart glass serving bowl.

Top with one-third each of the vanilla wafers, bananas and remaining pudding. Repeat layering twice, ending with pudding mixture. Chill thoroughly. Garnish as desired. Store leftovers covered in refrigerator.