Step 1: Prepare the Vanilla Pudding

1. In a large mixing bowl, whisk together the sweetened condensed milk and cold water until well combined.
2. Gradually add the instant vanilla pudding mix, whisking until smooth and creamy.
3. Cover the bowl with plastic wrap and refrigerate for at least 2 hours, or until the pudding sets.

Step 2: Make the Stabilized Whipped Cream

1. Place your mixing bowl and whisk attachment in the freezer for 30 minutes to chill.
2. Add the cold cream cheese to the chilled mixing bowl and beat on medium-low speed until smooth.
3. Gradually add the powdered sugar and mix on low speed, increasing to medium-high once incorporated.
4. Pour in the vanilla extract and mix briefly.
5. Slowly add the cold heavy cream in small additions while beating on medium-high speed. Beat until the whipped cream forms soft peaks. Be careful not to overwhip.

Step 3: Assemble the Trifle

1. In an 8-inch trifle dish, spread half of the vanilla pudding evenly across the bottom.
2. Add an even layer of half the chopped vanilla wafers.
3. Top with half of the sliced bananas, arranged neatly for presentation.
4. Spread half of the stabilized whipped cream evenly over the bananas.
5. Repeat the layers with the remaining pudding, wafers, bananas, and whipped cream.
6. Garnish the top with fresh banana slices, crushed vanilla wafers, and optional caramel drizzle.

Step 4: Chill and Serve

1. Cover the trifle dish with plastic wrap and refrigerate for at least 1 hour before serving to allow the flavors to meld together.
2. Serve with a large spoon, ensuring each scoop includes all the layers.