Prepare the Pudding: In a large mixing bowl, whisk the vanilla instant pudding mix with 2 cups of cold milk. Set aside and let it thicken for about 5 minutes.
Make the Cream Cheese Layer: In a separate bowl, blend the softened cream cheese and powdered sugar until smooth. Gently fold in the whipped topping.
Layer the Dessert: In a 9x13-inch baking dish, arrange a layer of vanilla wafers at the bottom. Slightly soak each wafer in milk for about 1-2 seconds before placing it in the dish.
Add the Banana Layer: Place sliced bananas on top of the wafers.
Spread the Pudding: Spread a generous layer of the prepared pudding over the bananas.
Repeat Layers: Add another layer of soaked vanilla wafers, followed by a layer of bananas, and finish with the remaining pudding mixture.
Chill: Cover and refrigerate for at least 4 hours, or overnight, to allow the flavors to meld and the dessert to set.
Serve: Before serving, garnish with extra vanilla wafers or banana slices, if desired. Slice and enjoy!