Place pudding mix in a medium saucepan. Add sugar; mix well.Gradually add milk, mixing until smooth.
Cook over medium heat, stirring constantly until mixture thickens and comes to a boil.
2Remove from heat. Cool. Pour into a freezer tray; chill until just firm , setting cold control for extra cold. Remove chilled mixture to a bowl; fold in whipped cream.
Blend well. Return to freezing tray, freeze for 3 hours. Set to same cold setting. (Don't forget to turn back to normal setting when done).
In medium bowl, combine condensed milk, water and vanilla. Refrigerate.Fold soft custard-like cream into the chilled mixture. Pour into ice tray.
4Freeze 1 hour or until a firm mush forms. Turn into chilled, large mixer bowl; break into pieces. Beat until fluffy but not melted. Quickly return to ice tray. Cover with foil. and freeze until firm.