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In a large bowl, beat together the sweetened condensed milk and water until well combined - about 1 minute. Add the pudding mix and beat well - about 2 minutes. Cover and refrigerate for at least ten minutes while preparing the rest of the dessert.
Dice angel food cake into 1-inch cubes. Set aside.
In a large bowl, whip the heavy cream until stiff peaks form. Gently fold the whipped cream into the pudding mixture until no streaks of pudding remain. Stir in almond extract.
In a 9x13 baking dish, layer half of the angel food cake cubes. Pour half of the cream mixture on top, and sprinkle half of the peaches. Repeat layers, ending with the peaches. Chill in the refrigerator for 4 hours up to three days. Serve.