In a medium bowl, add the peaches, cinnamon, and vanilla. Combine and mash the peaches with a fork. Set aside.
Place milk and pudding mix in a large bowl; beat with a whisk for about 2 minutes. Whisk in condensed milk until smooth.
Next fold in the whipped topping.
Arrange a layer of wafers in the bottom of casserole dish, preferably a 6x9 inch dish. Top with a layer of pudding mixture and then a layer of the mashed peaches; repeat layers until all ingredients are used.
Spread the 1 cup of the reserved whipped topping on top and chill pudding in the refrigerator for at least 1 hour before serving. Enjoy!