In a large mixing bowl, combine the vanilla pudding mix with 2 cups of cold milk. Whisk vigorously for about 2 minutes until the mixture thickens. Set aside to chill slightly.
In a separate bowl, beat the softened cream cheese until smooth and fluffy. Gradually add the sugar and continue to beat until creamy and free of lumps. Add the vanilla extract and mix well.
Gently fold the prepared vanilla pudding into the cream cheese mixture until smooth and well incorporated, avoiding overmixing.
In a clear glass bowl or individual serving cups, layer vanilla wafers at the bottom, followed by sliced bananas, a layer of pudding mixture, then sliced strawberries. Repeat layers, finishing with pudding on top.
Spread whipped cream evenly over the final pudding layer. Garnish with additional strawberry slices or whole vanilla wafers.
Cover the dish with plastic wrap and refrigerate for at least 4 hours, preferably overnight. Serve chilled and enjoy.