Whip cream with vanilla and refrigerate.
With a hand mixer, blend sweetened condensed milk with water on low speed until mixed. Add the vanilla pudding powder and continue to mix on low for about 2 minutes. Refrigerate approximately 20 minutes.
Wash and slice peaches. Cube the cake.
Fold whipping cream with sweetened condensed milk and pudding mixture. Layer the trifle, starting with cream mixture, then cake, half the jam and half the sliced peaches. Repeat, ending with cream.
Refrigerate at least 4 hours before serving. Makes 10-12 servings.