Using either a hand held mixer or a stand mixer combine the sweetened condensed milk, cold water, and cold milk. Mix on low-medium for 1 to 2 minutes.
Add the vanilla pudding mix and beat on medium for 2 minutes. The pudding mixture should just start to thicken.
Cover and refrigerate for 4 hours or overnight to ensure the pudding completely sets.
Using either a hand held mixer or a stand mixer, combine the heavy cream and vanilla flavoring and beat until the cream is stiff.
Gently fold the whipped cream into the fully set pudding. Fold until the cream and pudding is completely combined and uniform in color, with no visible streaks.
For presentation, use either a large serving bowl or a compote dish. Line the bottom of the bowl with 1/3 of the vanilla wafers (about 30 wafers).
Evenly layer 1 1/2 cups of the sliced bananas on top of the wafers.
Top banana slices with 1/3 of the pudding mixture.
Repeat until there are 3 layers of wafers, bananas, and pudding.
Crush the reserved 5-6 wafers.
To finish, sprinkle the top of the pudding with crushed wafers. You may also use any leftover crumbs from the wafer box. Cover and keep refrigerated until serving.