In large bowl combine sweetened condensed milk and water. Add pudding mix and beat well. Chill 5 minutes. Fold in whipped cream. Spoon 1cup pudding mixture into 2 1/2 qt glass serving bowl. Top with one-third each of the wafers, bananas and pudding.
Repeat layering twice, ending with pudding. Chill. Garnish as desired. I crush some of the vanilla wafers and put on top.
Refrigerate leftovers. You can also make in individual serving dishes.