To many, the banana pudding at the famed New York City shop Magnolia Bakery is even more iconic than the store's beloved cupcakes. Airy, creamy and delightfully reminiscent of childhood packaged snacks, this dessert is both a crowd pleaser and easy to assemble. You can make Magnolia Bakery's famous banana pudding at home. Beat the condensed milk and water until blended, add the instant pudding mix and beat until the mixture is smooth. Cover and refrigerate overnight, then whip the heavy cream with the mixer running. Add that pudding mixture one spoonful at a time. Mix it until you see no streaks left.