WHISK sweetened condensed milk and water in large bowl. Add pudding mix. Whisk 2 minutes or until well blended. Chill 5 minutes. Fold in whipped cream.
SPOON 1 cup pudding mixture into 2 ½-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.
For individual pudding desserts, prepare mixture and layer in dessert dishes.
