In a medium bowl, stir together condensed milk and water. Beat in pudding mix until smooth. Chill in refrigerator 5 minutes.
In a separate bowl, whip cream until stiff peaks form. Fold whipped cream into chilled pudding mixture.
Dip sliced bananas in lemon juice. Shake off excess.
In a 2 1/2 quart serving bowl, spoon 1 cup pudding mixture. Top with one-third each of the wafers, bananas and remaining pudding. Repeat layers twice. Chill until serving.